Nasdaq joins exchanges that aim to provide 24-hour trading for stocks.

According to Nasdaq President Tal Cohen,the second-largest US exchange operator intends to allow extended trading five days a week.

Written by Katherine Doherty :

In an effort to meet the increasing demand for US stocks around the world,Nasdaq Inc. intends to provide 24-hour trading on its stock market.

According to Nasdaq President Tal Cohen,the second-largest US exchange operator intends to allow the extended trading five days a week. Cohen stated in a LinkedIn post that,subject to regulatory approval and industry alignment, it anticipates beginning round-the-clock trading in the second half of 2026.

The action is in line with other exchanges’ plans: Prior to regulatory permission,Cboe Global Markets Inc.announced last month that it will expand trading on its stock exchange to be open twenty-four hours a day,five days a week. In October, the New York Stock Exchange submitted its own application, aiming to provide trading for 22 hours on weekdays.

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Cohen of Nasdaq noted that retail investors from other time zones were showing increased interest in US markets. However, he stated that markets and investors must take into account the dangers of greater transaction costs and more volatility that may follow from the extended trading hours.Cohen claims that even with the rise in overnight trading,liquidity is still “significantly lower” during such times.

Updates to the securities information processor,or SIP,which shows the best bid and offer price of a stock on an exchange at the moment of transaction, are also essential to the plans. This data must be updated to account for the additional hours if overnight trading is to be implemented on public stock markets.

According to Cohen,Nasdaq will collaborate with other industry players to reduce these risks and worries. According to a spokeswoman, it’s establishing a group to do so.

Cohen stated, “The question is not whether we can create a market that runs around the clock, but rather how we can do so in a way that boosts investor confidence in the US capital markets today.”

During the pandemic, extended trading hours were more prevalent, enabling investors to respond instantly to developments that moved the market. Businesses including Interactive Brokers Group Inc. and Robinhood Markets Inc. began allowing clients to purchase and sell US equities on off-exchange platforms like Blue Ocean’s alternative-trading system around-the-clock.

Wall Street has become divided by venues that provide continuous stock trading. Supporters claim that both domestic and foreign investors desire the flexibility to respond and access equities outside of US market hours. Critics have cautioned that reduced volume may result in poorer trade quality and less accurate pricing.

On the biggest stock exchanges in the US, most trading still takes place around the notorious opening and closing bell. One concern that remains is whether institutional traders will begin trading outside of those times when volumes are higher as a result of the extra hours.