Nasdaq Inc. on Friday announced plans to commence 24-hour a day trading by the second of 2026 to better cater to its rising global demand.
Tal Cohen, President of Nasdaq, disclosed this in a LinkedIn post.
He explained that there is a need to broaden investor access and redefine market operations to reflect increasing retail participation and rising financial literacy worldwide.
“The global growth of investor demand for U.S. equities means we stand at another pivotal moment for our markets – to broaden investor access, expand wealth-building opportunities, and redefine how markets function,” Cohen stated.
The proposed round-the-clock trading model is expected to enhance market liquidity and attract investors across different time zones, who currently rely on alternative trading platforms to access U.S. equities outside regular market hours.
By extending trading hours, Nasdaq aims to increase trading volumes and provide seamless access to its markets for international investors.
In a bid to ensure a smooth transition to 24-hour trading, Nasdaq has initiated discussions with the U.S. Securities and Exchange Commission (SEC) to secure the necessary approvals.
A spokesperson for Nasdaq confirmed that the exchange operator plans to file a formal application with the SEC in the coming months.
The move comes as rival exchanges such as Cboe Global Markets and Intercontinental Exchange, the parent company of the New York Stock Exchange (NYSE), have also announced intentions to extend trading hours.
Analysts suggest that Nasdaq’s decision is a strategic response to the evolving landscape of equity markets, where demand for more flexible trading hours has been growing steadily.
Michael Ashley Schulman, Partner and Chief Investment Officer at Running Point Capital Advisors, noted that regulatory approval would likely hinge on the readiness of securities information processors to handle continuous trading.
“I suspect regulatory approval will occur once the securities information processors are updated to handle round-the-clock markets,” Schulman said.
He also raised concerns about potential liquidity challenges and fair market pricing, suggesting that exchanges might initially focus on large-cap stocks during the extended hours.
The prospect of 24-hour trading has raised questions about additional fees for extended access.
“It will be interesting to see if they charge extra fees for extended trading,” Schulman added. The impact of such fees on retail investors and market liquidity is expected to be a key point of discussion during the regulatory review process.
Currently, some brokerages, including Charles Schwab and Robinhood, offer limited 24-hour trading on select assets, providing a glimpse of the potential demand for a fully operational 24/5 trading model.
Analysts suggest that a successful rollout by Nasdaq could set a precedent for other major exchanges to follow, fundamentally reshaping how global investors access U.S. equities.
