The Nasdaq and NYSE plan to extend trading hours to a 24/5 or 24/7 model, taking inspiration from the crypto market to meet international demand.
The extended hours could enhance liquidity and trading volumes, reducing the impact of time zones on stock transactions.
Nasdaq is already involved in crypto with BlackRock’s iShares Bitcoin Trust and Ethereum and Solana ETFs, strengthening its connection to financial innovation.
A revolution in trading hours underway
The Nasdaq and the New York Stock Exchange (NYSE) are actively working towards introducing 24/7 (24/5) trading, a major transformation inspired by cryptocurrency markets. The goal is to meet the growing demand from international investors who want to buy and sell stocks without being constrained by fixed trading hours.
While the crypto market has accustomed traders to a market accessible at any hour, the largest US exchanges want to adapt their structures to offer continuous access to stock trading.
An ongoing advancement
There is a strong global demand for US stocks, and investors want to be able to trade when they are awake. This trend is largely influenced by the continuous nature of the crypto market.
Nasdaq has initiated discussions with regulators to obtain the necessary authorizations for extending its trading hours. On the other hand, NYSE has already received the green light to extend its trading sessions. This development could gradually transition to operating 24 hours a day, five to seven days a week.
“We clearly see that this is the direction the markets are taking,” said Giang Bui, Head of Equity and ETF Trading Products at Nasdaq, during the Digital Asset Summit in New York.
24/7 trading: a significant impact on liquidity and volumes
The extension of trading hours could have several positive effects on traditional markets. By eliminating the barrier of time zones, trading volume could increase, along with the liquidity of financial assets. Currently, the US stock exchange operates from 9:30 am to 4:00 pm (New York time), a framework that could quickly become obsolete in response to investor expectations.
We receive this demand from many players, whether they are international or US brokers. Many already offer overnight trading because their clients are used to trading crypto outside of traditional hours.
This shift is driven by global brokers and US brokers, some of whom already offer continuous trading to cater to the habits of crypto investors.
Nasdaq already involved in the crypto space
The Nasdaq’s interest in 24/7 trading doesn’t come out of nowhere. The platform is already a major player in the adoption of financial products related to cryptocurrencies. It hosts, for instance, BlackRock’s iShares Bitcoin Trust (IBIT), the Bitcoin Spot ETF that had the best launch in history for a US ETF. More recently, Nasdaq has also listed two futures-based Solana (SOL) ETFs issued by Volatility Shares.
