Nasdaq Unveils Plan for 24-Hour Trading, Aiming to Attract Global Investors
Nasdaq, one of the world’s leading stock exchanges, has announced its intention to allow 24-hour trading five days a week. The ambitious plan, which is pending regulatory approval, is set to be implemented in the second half of 2026. This move aims to attract global investors and enhance market access across different time zones, potentially revolutionizing the way stocks are traded.
Tal Cohen, Nasdaq’s president, emphasized the significant opportunity this presents for both the US and global economies. “We are focused on engaging with regulators, market participants, and stakeholders to build a market that strengthens investor confidence,” Cohen stated. The exchange is committed to working closely with all relevant parties to ensure a smooth transition to the new trading model.
This announcement follows similar moves by other major exchanges. The New York Stock Exchange (NYSE) recently unveiled plans to extend trading to 22 hours a day, although it still faces regulatory hurdles. Cboe Global Markets has also announced its intention to implement 24-hour, five-days-a-week equity trading. In February, the Securities and Exchange Commission (SEC) approved NYSE’s extended trading plans, signaling a potential shift in the regulatory landscape.
The news comes at a time when the Nasdaq Composite has been experiencing volatility. On Thursday, the index was down about 2.6%, entering market correction territory and reaching its lowest point since before the 2016 US presidential election. Early Friday trading showed little change in the Nasdaq Composite, reflecting ongoing market uncertainty.
The move towards 24-hour trading has broader implications for the financial markets. While it offers potential benefits for global investors and the US economy, it also presents challenges in terms of implementation and oversight. Regulatory bodies will play a crucial role in approving and monitoring these changes to ensure market stability and investor protection.
As the financial world watches closely, Nasdaq’s bold step towards round-the-clock trading could mark a significant shift in global market dynamics, potentially reshaping the future of stock trading.