The Nasdaq stock market has unveiled plans to extend its trading hours to nearly 24 hours a day, operating from 4 a.m. to 11:30 p.m. Eastern Time, seven days a week. The move has sparked concern among market participants about increased volatility, cybersecurity risks, and operational strain.
- Nasdaq proposes 23.5-hour trading window from 4 a.m. to 11:30 p.m. ET, seven days a week
- Implementation expected by June 2026, with a 30-minute daily maintenance window
- After-hours volatility is 2.3 times higher than during regular hours, according to internal data
- Projected annual revenue increase of $1.2 billion from expanded trading activity
- Clearing firms anticipate 60% rise in weekend operational costs
- SEC currently reviewing the proposal amid growing industry opposition
Nasdaq Inc. has formally proposed a new trading schedule that would allow equities to trade for 23.5 hours daily, expanding current extended-hours sessions. The plan, which would begin in Q2 2026, aims to align U.S. markets more closely with global trading hubs in London, Tokyo, and Singapore. Under the proposal, the exchange would remain open from 4 a.m. to 11:30 p.m. Eastern Time, seven days a week, with only a 30-minute gap each day for system maintenance and reconciliation. Market participants are divided over the shift. Some institutional investors and liquidity providers warn that continuous trading could amplify volatility, particularly during low-liquidity periods such as weekends and overnight hours. A recent internal analysis by a major U.S. asset manager showed that after-hours trading volumes increased by 47% between 2022 and 2024, yet price volatility during those hours was 2.3 times higher than during regular trading windows. Critics argue that formalizing this extended window could entrench existing inefficiencies and encourage high-frequency trading strategies that exploit timing disparities. The proposal includes a phased rollout with full implementation expected by June 2026. Nasdaq estimates the change could generate an additional $1.2 billion in annual trading fees, based on current activity levels and projected participation. However, concerns are mounting about the operational burden on clearinghouses, market data providers, and compliance departments, which currently operate on a five-day schedule. One clearing firm reported that its weekend back-office processing costs would rise by an estimated 60% under the new model. Regulatory scrutiny is expected, as the Securities and Exchange Commission is reviewing the proposal. If approved, Nasdaq’s move could set a precedent for other exchanges, including the New York Stock Exchange, to follow suit. The shift would mark a pivotal change in market infrastructure, reshaping how investors engage with U.S. equities across time zones and weekends.