Nasdaq (NDAQ), a leading exchange operator, is seeking approval to expand trading hours at the Nasdaq Stock Market. The announcement was made on Friday, March 7, 2025 by Tal Cohen, the CEO.
Nasdaq Wants To Extend Trading Hours
According to the March 7 announcement By Tal Cohen, they aim to offer 24 hour trading from Monday to Friday on the Nasdaq Stock Market COMP. Cohen stated that they had already begun engagement with regulators, market participants and other key stakeholders. According to him, regulatory approval is anticipated in the second half of 2026. Before moving ahead, Nasdaq would need approval from the SEC.
Why The Change
According to Cohen, the change was prompted by rising retail participation in the stock market. He noted that wealth accumulation across major regional economies had reduced the barriers to entry. Additionally, there was a growing global appetite for US stocks.
Quoting some numbers, Cohen noted that total foreign holdings of US equities peaked at $17 trillion in June 2024, a 97% rise since 2019. He noted investors were drawn in by the strong regulatory framework, and access to high-growth sectors like healthcare, and technology.
Other factors include rising financial literacy, and proliferation of digital trading platforms. He also noted that investors were diversifying their trading strategies, including investments in ETFs and options. Cohen noted that over 56 exchange traded products had launched in the last five years that track that Nasdaq-100 index, with 98% of those launched outside the US.
Finding A Balance
In the blog post, Cohen acknowledged concerns on liquidity and corporate actions. He stated that exchanges must find a balance between market stability and technological innovation.
It is the latest in major exchange operators like Intercontinental Exchange that operates the NYSE, and Cboe Markets seeking to extend trading hours.
What To Expect From Nasdaq
The initial rollout would most likely focus on stocks with high market caps. However, issues like liquidity, fair price, and trading fees have yet to be decided. 24-hour trading is already available in some limited form via brokers such as Robinhood and Charles Schwab. However, the Nasdaq aims to ensure broader adoption.
Nasdaq Composite Enters Correction Territory
For over tw years, the Nasdaq Composite has been the mainstay of investors in the tech sector looking for fast gains. Howevever, after two years of non-stop growth, the Nasdaq Composite finally fell into market correction territory. It has dipped 8.02% year to date, and as of Monday, March 10, 2025, it is down 2.36% to 17,767.75 points as of 9;42 AM EDT. The potential launch of 24-hour trading does not appear to have swayed the markets, with macroeconomic factors like tariffs taking center stage.
Conclusion
The introduction of round-the-clock trading could come with some major advantages. For one, it would allow traders in Europe, Asia, and other regions to participate in real-time trading in US markets, reducing reliance on third-party platforms. If successfully executed, it could change how investors engage with US stocks, making the market more responsive to international demand.
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