Under the proposal, Nasdaq would extend trading hours to cover nearly the entire weekday, closing for just one hour each day to support system maintenance and operational resets. If approved, the change would mark one of the most significant structural updates to U.S. stock market trading hours in decades.
Why Nasdaq is pushing for longer trading hours
Nasdaq’s initiative reflects rising interest from international investors who want real-time access to U.S. stocks during their local market hours. With global participation in U.S. equities increasing, especially from Asia and Europe, demand for extended U.S. stock market trading hours has intensified.
Exchange officials and market participants say that technological advancements have made continuous trading more feasible than ever. Electronic trading systems, automated market makers, and improved risk controls have reduced the need for tightly restricted trading windows, paving the way for expanded access.
Nasdaq’s proposed 23-hour model would allow investors to react more quickly to earnings releases, economic data, and geopolitical developments that often occur outside traditional U.S. market hours.
How 23-hour trading could change U.S. stock markets
If the SEC approves the filing, nearly round-the-clock trading could bring both opportunities and challenges. On the positive side, longer hours may improve market accessibility and allow investors to manage risk more effectively across time zones. This is particularly relevant for institutional investors and global asset managers seeking continuous exposure to U.S. equities.
However, market structure experts caution that liquidity during overnight hours may initially be thinner, potentially leading to higher volatility. Bid-ask spreads could widen during periods of lower participation, raising concerns about execution quality for retail traders.
Nasdaq has indicated that it is working closely with brokers, market makers, and clearing firms to ensure sufficient liquidity and robust risk management during extended sessions.
Regulatory scrutiny and SEC considerations
Any expansion of U.S. stock trading hours requires SEC approval, and regulators are expected to carefully examine the proposal’s impact on market stability, investor protection, and operational resilience. Key questions include how overnight trading would affect price discovery, surveillance, and settlement processes.
The SEC has historically taken a cautious approach to major market structure changes. However, recent years have seen regulators show openness to innovation, particularly when proposals aim to enhance market access and transparency.
Nasdaq’s filing is expected to outline safeguards addressing concerns around system outages, staffing requirements, and compliance monitoring during extended hours.
Competitive pressure and global market trends
Nasdaq’s move also reflects competitive pressure within the exchange industry. Alternative trading platforms and international exchanges already offer extended or near-24-hour trading for certain asset classes, including futures and cryptocurrencies.
By moving toward almost 24-hour U.S. stock trading, Nasdaq could strengthen its position as a global hub for equity trading and reduce incentives for investors to seek exposure through offshore or derivative markets during U.S. off-hours.
Industry analysts note that if Nasdaq’s proposal gains approval, rival exchanges may feel compelled to follow suit, potentially leading to a broader shift in how U.S. equity markets operate.
What this means for investors
For retail investors, 23-hour weekday trading could offer greater flexibility but also requires heightened awareness of market conditions outside regular hours. Lower liquidity and higher volatility during overnight sessions may increase risks for less experienced traders.
Institutional investors, on the other hand, could benefit from improved hedging capabilities and more efficient portfolio adjustments in response to global events.
Brokerages and trading platforms would also need to adapt, potentially expanding customer support, compliance operations, and technology infrastructure to support extended trading.
What comes next
Nasdaq has not provided a specific timeline for SEC approval, and the review process could take several months. Public comments, industry feedback, and regulatory analysis will all play a role in determining whether the proposal moves forward.
If approved, the shift to 23-hour weekday trading would represent a landmark evolution in U.S. financial markets, bringing them closer to a continuous global trading model.
As investor behavior becomes increasingly international and digital, Nasdaq’s plan underscores a broader transformation underway one where time zones matter less, and access to markets becomes nearly constant.