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Nasdaq has asked US regulators for approval to extend its trading hours to nearly the entire day. The proposal would allow stocks and exchange-traded products to trade for 23 hours a day, five days a week. This plan was submitted to the Securities and Exchange Commission and is currently under review.
Nasdaq said the change would expand access for investors outside the United States. The filing indicates that overnight trading interests have been gradually increasing given numerous investors are based in locations where US market hours do not align with local business hours.
If the proposal gets approved, it would bring the US equity markets closer to the almost continuous trading model already in use across cryptocurrency platforms. Moreover, longer trading hours would likely transform how global investors can access US stocks.
Nasdaq has put forward a scheme that divides the trading day into two parts. First, the day session would run from 4 a.m. to 8 p.m. Eastern Time, followed by one hour set aside for trading to pause. The night session would commence at 9 p.m., continuing until 4 a.m. of the next day.
This plan will allow for the trading week to open at 9 p.m. Eastern Time on Sunday and close at 8 p.m. on Friday. Nasdaq has also assured the traditional opening bell at 9:30 a.m. and the closing bell at 4 p.m. will remain in place. The market will, in fact, remain open during the same time frame as it has been so far.
The exchange also spoke about the reporting practices; trades performed from 9 p.m. to midnight will be listed in the next calendar day.
Nasdaq pointed out how demand from overseas investors played a central role in this proposal. The exchange hinted at growing participation from Asia and other international markets. Many of these investors face limited access during US daytime hours; as a result, trading activity often shifts to alternative venues.
Nasdaq acknowledged that extended-hours volume remains lower than daytime trading. Even so, the exchange highlighted that overnight activity continues to rise. Some investors have turned to alternative trading systems that operate around the clock, including platforms with 24-hour or near-24-hour access.
Nasdaq also noted increased use of digital asset platforms which allow trading in cryptocurrencies, tokenized assets, and tokenized securities without time restrictions.
As per Nasdaq statements, the proposal seeks to compete for global order flow. The exchange cited venues such as Blue Ocean, Bruce, Interactive Brokers, and OTC Moon, describing this plan as a preparation for future changes in the market structure - extended hours could support participation in digital asset markets.
Reuters first reported the filing earlier this week. The SEC review process is expected to include public comment. With Nasdaq stating that the proposal reflects changing global trading behavior, regulators will now examine liquidity conditions, market stability, and operational risk.
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Nasdaq has asked the SEC to approve a plan to extend trading to 23 hours/day. The proposal targets global investors, supporting overnight access in response to rising competition from always-on platforms. The decision now rests with regulators as public review begins.
