Nasdaq Pushes for '23-Hour Trading' 5 Days a Week... Submits Application to the US SEC

Nasdaq, the world's second-largest stock exchange, is pushing to significantly expand its stock trading hours from the current 16 hours a day to 23 hours.

Nasdaq, home to major technology stocks such as Nvidia and Apple, plans to formally request rule changes from the U.S. Securities and Exchange Commission (SEC) to meet the demands of global investors trading U.S. stocks. According to Reuters on the 15th (local time), Nasdaq plans to submit documents to the SEC on the 16th to introduce a stock trading system operating 23 hours a day, 5 days a week. Currently, Nasdaq operates for a total of 16 hours a day, including the pre-market (4:00 AM to 9:30 AM), regular market (9:30 AM to 4:00 PM), and after-hours market (4:00 PM to 8:00 PM).

If the new plan is introduced, Nasdaq's trading hours will be reorganized into a 'day session' and a 'night session.' The day session will operate from 4:00 AM to 8:00 PM, followed by a one-hour system maintenance and settlement period, and then the night session will continue from 9:00 PM to 4:00 AM the next day. Trades occurring during the night session between 9:00 PM and midnight will be processed as the following day's trades. Nasdaq's decision follows growing demands for expanded global accessibility to the U.S. stock market. Chuck Mack, Senior Vice President and Head of North American Markets at Nasdaq, stated, "The globalization of the U.S. markets continues," adding, "Investors around the world want to access the massive U.S. market in their own time zones." According to Nasdaq data, foreign holdings of U.S. stocks reached $17 trillion (about 23,400 trillion won) last year.

Previously, the New York Stock Exchange (NYSE) and the Chicago Board Options Exchange (Cboe) also announced plans to transition to a 24-hour trading system, which is expected to accelerate the competition to expand operating hours among major U.S. exchanges. However, it appears it will take some time for actual 24-hour trading to be implemented. Nasdaq President Tal Cohen anticipated in March, "Following discussions with regulatory authorities, we may be able to launch 24-hour trading, five days a week, in the second half of 2026." The central clearinghouse, the Depository Trust & Clearing Corporation (DTCC), is also aiming to build a real-time clearing system by the end of 2026.

Once this measure is implemented, overseas investors will be able to immediately respond to major news or corporate earnings announcements that occur after the regular market closes. However, large Wall Street banks are taking a cautious stance on the expansion to 24-hour trading, citing reasons such as reduced liquidity, increased volatility, and uncertainty in investment returns. Regarding this, Vice President Mack explained, "Even in market stress situations, the system is robust and has sufficient processing capacity."