INDUSTRY
Nasdaq joins global stock exchanges in offering 24-hour trading
- IBJ Bureau
- Mar 08, 2025
Nasdaq plans to offer 24-hour trading on its equities exchange, the latest venue seeking to capitalse on growing global demand for US stocks.
The second-largest US exchange operator plans to enable the extended trading five days a week, according to Nasdaq President Tal Cohen. It expects to start round-the-clock trading in the second half of 2026, pending regulatory approval and alignment with the rest of the industry, Cohen said in a post on LinkedIn.
The move follows plans by other exchanges: CBOE Global Markets said last month it would extend trading on its equities exchange to 24 hours, five days a week, pending regulatory approval. The New York Stock Exchange filed its own application in October with plans to offer trading 22 hours on weekdays.
Mr Cohen pointed to heightened interest in US markets from retail investors in different time zones. Still, he said markets and investors need to consider the risks associated with increased volatility and higher transaction costs that can come as a result of the expanded trading hours. Despite the increase in overnight trading, liquidity is still “significantly lower” during those hours, according to Cohen.
The plans also hinge on an update to the securities information processor, also known as the SIP, which displays the best bid and offer price of a stock on an exchange at the time of transaction. For overnight trading to take effect on public stock venues, this data needs to be updated to accommodate the extra hours.
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