In a significant move to adapt to the evolving landscape of global finance, Nasdaq has filed a proposal with the U.S. Securities and Exchange Commission (SEC) aimed at extending its trading hours. The exchange plans to shift its operations from the current 16-hour trading window to a more comprehensive 23-hour schedule, five days a week.
Under the new framework, trading for stocks and exchange-traded products (ETPs) would commence at 4 a.m. and continue until 8 p.m. ET, followed by a brief one-hour pause. Following this intermission, a night session would take place from 9 p.m. to 4 a.m. ET the following day. The trading week would start on Sunday at 9 p.m. and conclude on Friday at 8 p.m., allowing for a continuous trading environment that aligns more closely with global market needs.
This proposed change is particularly noteworthy because many public cryptocurrency companies, such as Coinbase, Robinhood, and various bitcoin mining entities, are listed on Nasdaq. By extending trading hours, Nasdaq aims to make these assets more accessible to international traders, catering to the rising demand among global investors who wish to engage in U.S. stock trading outside traditional market hours.
Historically, U.S. stock markets have operated from 9:30 a.m. to 4 p.m. ET. Although trading volumes during extended hours have been significantly lower than during regular sessions, Nasdaq has noted a growing interest in overnight trading, especially among investors in Asia and other regions where local business hours do not overlap with U.S. trading times.
In its filing, Nasdaq expressed, “Although trading volume in extended hours trading tends to be considerably lower… we have observed a growing interest in trading during overnight hours.” This shift can be seen as a response to the round-the-clock nature of cryptocurrency trading, which has fundamentally altered investor expectations. Many traders are increasingly utilizing platforms that provide 24/7 access to various markets, including digital assets.
This trend toward extended trading hours is not unique to Nasdaq. The New York Stock Exchange (NYSE) has also indicated its consideration of longer trading periods and has received SEC approval for its own after-hours expansion. Nasdaq’s Giang Bui, head of U.S. equities and exchange-traded products, previously remarked that such a transformation is indeed “where the markets are moving.”
Under the proposed changes, trades executed between 9 p.m. and midnight would count towards the next calendar day, marking a strategic effort to broaden access to U.S. markets across diverse time zones. This expansion could appeal to both institutional and retail traders who are active in global markets or cryptocurrency sectors.
Ultimately, Nasdaq’s initiative to extend trading hours reflects a concerted effort to attract order flow from both domestic and international investors, establishing a more competitive stance in the rapidly evolving financial landscape that increasingly encompasses digital assets.
