Nasdaq's 23-Hour Trading System Approved by SEC, Set to Launch on December 6
Nasdaq's 23-Hour Trading System to Launch on December 6
Nasdaq's 23-hour trading system has been approved by the SEC and will officially launch on December 6.
Under the new rules, U.S. stock trading will occur almost continuously from Sunday evening to Friday evening, with only one hour reserved for system clearing and data processing each day. The traditional trading hours will still serve as the main price discovery benchmark.
This marks a significant extension of trading hours for U.S. stocks, with a focus on facilitating global investor access and changes in liquidity. Asian and European traders will benefit from increased time zone overlap, while liquidity and volatility management during nighttime hours will be under pressure.
Source: Public Information
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Nasdaq is promoting near-round-the-clock trading to match global capital flows and the continuous nature of markets like crypto and forex. The one-hour daily pause is for technical and clearing transitions, avoiding completely uninterrupted system risks.
In terms of capital flow, extending trading hours can enhance the exchange's competitiveness and data revenue, while requiring brokers, market makers, and investors to adjust risk control and staffing. The motivation is to capture trading share in a 24-hour economy and attract more international participation.
This follows a path similar to other exchanges gradually extending their hours, currently in the phase of transitioning from extended hours to near-round-the-clock operations.
Essentially, this is a restructuring of the industry chain: trading infrastructure is shifting from traditional time zone centers to global continuous access, with the mechanism aimed at minimizing time friction to serve cross-border capital.
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The longer the trading hours, the smaller the friction for global capital.
A near-round-the-clock market ultimately tests risk control rather than opportunity.
The competitiveness of exchanges increasingly depends on who opens the time window first.