Nasdaq, Inc. filed a formal request with the U.S. Securities and Exchange Commission to add a nightly trading session from 9 p.m. to 4 a.m. Eastern Time, extending the exchange’s daily trading hours to 23 hours. The filing marks the first step toward near‑continuous trading of U.S. equities on Nasdaq’s platform.
The proposed schedule would split the day into a 4 a.m.–8 p.m. session and a 9 p.m.–4 a.m. session, with a one‑hour maintenance break between them. Nasdaq has indicated that it aims to launch the extended hours in the second half of 2026, pending regulatory approval and the necessary infrastructure upgrades.
Management said the change reflects “global investors’ demand for access on their terms and in their time zones, without compromising trust or market integrity.” The expansion is intended to broaden liquidity and price discovery, especially for international investors who trade outside traditional U.S. market hours, and to reduce the price impact of late‑day news by providing a dedicated after‑hours window.
The move introduces operational challenges, including thin liquidity during overnight periods, the need for robust surveillance and risk controls, and coordination with key market infrastructure providers such as the Depository Trust & Clearing Corporation and the Securities Information Processor. Nasdaq plans to upgrade its SIP and DTCC systems to support 24‑hour operations, ensuring continuous market data and clearing services.
In a competitive landscape where the New York Stock Exchange and Cboe Global Markets are also exploring extended hours, Nasdaq’s proposal positions it as a technology‑driven market infrastructure provider. The exchange’s FY2024 revenue mix—51.21% from Market Services, 22.01% from Market Technology, and 26.78% from Capital Access Platforms—shows a diversified business model, with 78.61% of revenue coming from U.S. markets.
No immediate market reaction has been reported, but investors will closely monitor regulatory approval and the execution of the necessary infrastructure upgrades to assess the impact of the extended hours on liquidity and market quality.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.