International demand for the lucrative US equity market has
surged in recent years, driven by rising retail participation, increasing
financial literacy, and easier access to digital trading platforms.
The exchange operator has started discussions with
regulators and expects to launch 24-hour, five days a week trading in the second
half of 2026, Nasdaq President Tal Cohen wrote in a LinkedIn post.
A round the clock trading model will allow exchanges to
tap into global demand - which is currently catered to by alternative trading
platforms - by attracting investors across time zones, increasing trading
volumes, and improving market liquidity.
"The global growth of investor demand for US equities
means we stand at another pivotal moment for our markets – to broaden investor
access, expand wealth-building opportunities, and redefine how markets
function," Cohen said.
Nasdaq
joins rival exchanges like Cboe Global Markets and Intercontinental Exchange,
the operator of the New York Stock Exchange, in planning extended trading
hours.
"I suspect regulatory approval will occur once the
securities information processors are updated to handle round the clock
markets," Michael Ashley Schulman, partner and CIO at Running Point
Capital Advisors told Reuters.
Exchanges might initially experiment with extended trading
in large market-cap stocks, but "it will be interesting to see if they
charge extra fees for extended trading," Schulman said. "Liquidity
and fair market pricing will be relevant issues to address."
