NASDAQ is making a play for 24/7 trading, and it is not just an experiment. The exchange has already begun talks with regulators and aims to launch round-the-clock trading by the second half of 2026. Other major players, including Cboe Global Markets and the New York Stock Exchange, are on the same path, all pushing for longer hours to capture a more global investor base.
The reasoning is straightforward. More trading hours mean more opportunities for investors to react instantly to breaking news, economic shifts, and corporate earnings, no matter the time zone. The financial world never sleeps, so why should the stock market? That is the pitch, at least. More liquidity, more volume, more participation—at least in theory.
But there is another side to this. Overnight trading is notoriously thin, leading to wilder price swings and less precise pricing. The reality is that lower liquidity can make transactions more expensive, not cheaper. Then there is the technical side. The securities information processor, the backbone of U.S. market data, is not built for 24/7 operations. Updating it will take time and money, and not everyone is convinced the benefits outweigh the risks.
This shift is not just about accessibility. It is about control. Retail investors may welcome the flexibility, but major institutions stand to benefit the most. With hedge funds and market makers already dominating the extended hours, expanding to 24/7 trading could give them even more room to maneuver. More arbitrage, more high-frequency trading, more after-hours positioning that leaves the average investor at a disadvantage.
The stock market is already volatile. Introducing 24/7 trading only adds another layer of unpredictability. The push for round-the-clock access is being sold as a move toward a more inclusive market, but who really benefits when the market never sleeps?
Sources:
https://finance.yahoo.com/news/nasdaq-joins-exchanges-seeking-offer-130000222.html
https://www.usatoday.com/story/money/markets/2025/03/07/nasdaq-launch-24-hour-trading/81957633007/