NEWS

Nasdaq is nearing the launch of a near-continuous, 24-hour trading system, a move some Wall Street insiders describe as unnecessary and potentially destabilizing, according to a CNBC report published Tuesday, December 16.

The exchange said it intends to file with the U.S. Securities and Exchange Commission (SEC) to allow trading of listed stocks and exchange-traded products (ETPs) for nearly 24 hours a day, five days a week. If approved, the new system would begin in the second half of 2026.

Details of the Proposal

Under the plan, Nasdaq would expand daily trading hours to 23 hours, up from the current 16.

Daytime Session: 4 AM to 8 PM EST

Technical Break: One hour for maintenance, testing, and clearing

Nighttime Session: 9 PM to 4 AM

Criticisms: Low Liquidity and Higher Volatility

Critics argue that shifting trading to near-continuous activity could exacerbate existing problems, such as low liquidity outside of key trading hours, wide volatility, and an increased "gambling" or "speculative" nature to trading.

Wells Fargo's trading desk described the move as "the worst thing that could happen," arguing that it makes the market more akin to gambling.

Guy Woods, chief market strategist at Freedom Capital Markets, warned that companies need breaks to release news and hold meetings without impacting stock prices, adding that removing these breaks "opens a new can of worms."

Broader Context

Currently, Nasdaq operates across three sessions:

Pre-opening: 4:00 AM – 9:30 AM

Main session: 9:30 AM – 4:00 PM

After-close: 4:00 PM – 8:00 PM

Some retail brokers, such as Robinhood, have already begun offering extended or near-continuous trading for a number of stocks and cryptocurrencies.

The New York Stock Exchange (NYSE) is also pursuing a 22-hour trading model and has received preliminary approval from the SEC.

Liquidity Concentrates at Specific Moments

Wells Fargo analysts point out that most liquidity accumulates around the opening and closing times, making extending trading hours “illogical.”

Some question the ability of institutions to operate trading desks around the clock, as most traders currently work only between 9:30 AM and 4:00 PM.

Woods emphasizes that the breaks are necessary to catch our breath and digest the information, saying, “We take breaks for a reason. We need to recharge and get back to a point of equilibrium. We already have volatility during the day, and if the markets move too quickly, we stop trading.”