Nasdaq Seeks SEC Approval for 23-Hour Trading During Weekdays

Link copied

Nasdaq Seeks SEC Approval for 23-Hour Trading During Weekdays.

stock :: 2025-12-16 :: source - bloomberg

By Katherine Doherty

(Bloomberg) — Nasdaq Inc. (NDAQ), the second-largest exchange in the US, is looking for regulatory approval to extend trading hours on its stock venues to 23 hours during the work week.

The firm asked the Securities and Exchange Commission for permission to add an additional trading session, from 9 p.m. to 4 a.m. ET, according to a filing Monday. That would be on top of the pre-market, regular and post-market hours the firm already operates, the firm said.

The Nasdaq MarketSite,in New York. (AP Photo/Richard Drew)

Other exchanges have also outlined their own path to extending trading hours on their venues, including the New York Stock Exchange, which plans to offer trading 22 hours on weekdays. That proposal got initial approval from the SEC in February, pending updates to the market’s data feed.

To make this a reality, key players including the Depository Trust & Clearing Corp., which handles clearing, and the Operating Committees of the Securities Information Processors, which display real-time pricing, need to extend their hours too. Both organizations have submitted their plans, with the DTCC saying it plans to begin clearing equity trades 24 hours a day, five days a week by the second quarter of 2026.

The development may appeal “to more retail investors in different markets around the world,” said Kerry Craig, global market strategist at JPMorgan Asset Management in Melbourne.

Extended trading hours became more common during the pandemic, allowing investors to react to market-moving events immediately. Firms such as Robinhood Markets Inc. (HOOD) and Interactive Brokers Group Inc (IBKR) started enabling customers to buy and sell US stocks 24 hours a day, five days a week on off-exchange venues like Blue Ocean’s alternative-trading system.

Venues that allow extended stock trading have split Wall Street. Proponents say investors both in the US and overseas want the ability to access and react to stocks outside of US market hours. Opponents have warned that the quality of trading may suffer from lower volume, which can make pricing less precise.

The majority of trading activity still occurs around the famed opening and closing bells across the largest stock exchanges in US markets. With the additional hours, a lingering question becomes whether institutional traders will start to trade outside of those moments when volumes are higher.

“The real test is liquidity depth,” said Hebe Chen, an analyst at Vantage Markets in Melbourne. “If institutional participation follows, it’s a clear win for Asia-based investors; if not, extended hours may prove noisier rather than more efficient.”

—With assistance from Winnie Hsu and Ruth Carson.