The Nasdaq MarketSite in New York, Nov. 20, 2025.
Michael Nagle | Bloomberg | Getty Photos
Nasdaq is shifting nearer to around-the-clock inventory buying and selling, a shift that some on Wall Road are calling pointless — and doubtlessly destabilizing.
The alternate mentioned it plans to submit paperwork to the Securities and Alternate Fee to permit U.S.-listed equities and exchange-traded merchandise to commerce almost 24 hours a day, 5 days per week. If authorized, the brand new schedule would launch within the second half of 2026.
Beneath the proposal, Nasdaq would increase buying and selling hours to 23 hours every weekday from the present 16 hours. Shares would commerce in a “day session” from 4 a.m. to eight p.m. Jap time, adopted by a one-hour pause for upkeep, testing and clearing. A “night time session” would then run from 9 p.m. to 4 a.m. the next morning.
Critics argue that formalizing almost nonstop buying and selling may worsen a few of the very issues that plague the construction of fairness markets as we speak — skinny liquidity, sharp worth swings and an more and more “gamified” buying and selling setting.
‘Worst factor on the earth’
“That is actually the worst factor on the earth,” the Wells Fargo buying and selling desk wrote in a notice to shoppers. “I can’t consider an motion that single-handedly gamifies the inventory market much more than it has already develop into. That is the epitome of constructing buying and selling much more like playing.”
Jay Woods, chief market strategist at Freedom Capital Markets and a former market maker on the ground of the New York Inventory Alternate, raised considerations in regards to the impression on listed firms themselves.
“Listed firms want a time to interrupt and launch information occasions and to have conferences the place they don’t seem to be shifting markets, and now we’re taking that away from them,” Woods mentioned. “You are opening up a brand new can of worms.”
Nasdaq at present operates three weekday classes: pre-market buying and selling from 4 a.m. to 9:30 a.m., the common session from 9:30 a.m. to 4 p.m., and after-hours buying and selling from 4 p.m. to eight p.m.
Retail-focused brokers, together with Robinhood, have already rolled out prolonged or near-24-hour buying and selling for sure U.S. shares and cryptocurrencies, responding to demand from particular person buyers who need the power to commerce on international information at any time.
The New York Inventory Alternate is pursuing its personal extended-hours mannequin, with plans for 22 hours of weekday buying and selling that received preliminary SEC approval in February, contingent on data-feed upgrades.
Liquidity cluster
Wells Fargo added that the majority liquidity already clusters across the market open and shut, making the thought of stretching buying and selling hours even additional counterproductive.
“A lot of the complaints that I hear on market construction are about how dangerous volumes are as most is available in across the open and shut,” the notice mentioned. “And the business transfer is to then elongate the buying and selling day even additional? This is senseless in any respect.”
Whereas Nasdaq says prolonged hours may finally appeal to extra participation, skeptics ask whether or not companies could be compelled to workers buying and selling desks across the clock.
“We all know between 9:30 and 4, most merchants are at their desk. The largest establishments are working,” Woods mentioned. “Are we going to have so as to add an entire new ecosphere of merchants and establishments to man the desks to allow them to take part across the clock?”
Woods believes pauses in buying and selling serve a goal, enabling markets to digest data and individuals to reset.
“We take breaks for a motive,” Woods mentioned. “Let’s recharge the batteries. Let’s all get on the identical web page. We have already got volatility … through the day. If issues transfer too far, too quick, we take a pause.”