In a historic shift towards a 24/7 financial system, Nasdaq has formally asked regulators to extend trading to 23 hours a day, challenging traditional market boundaries.
NEW YORK - In a definitive move that could fundamentally alter the rhythm of global finance, Nasdaq has filed paperwork with the U.S. Securities and Exchange Commission (SEC) to expand its trading operations to 23 hours a day, five days a week. The proposal, submitted on Monday, December 15, 2025, marks the exchange's aggressive bid to capitalize on surging international demand for U.S. equities and to modernize Wall Street's infrastructure in the face of a 24/7 digital economy.
According to reports from Reuters and Yahoo Finance, the filing outlines a plan to bridge the gap between North American market closes and the opening bells in Asia and Europe. If approved, the new schedule would see trading kick off on Sundays at 8:00 p.m. ET and run continuously through Friday at 8:00 p.m. ET, with only a daily one-hour pause for maintenance. This shift represents one of the most significant structural changes to American equity markets in decades, effectively dismantling the concept of "after-hours" trading.
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The proposal details a specific operational structure designed to extend liquidity without compromising system integrity. Currently, Nasdaq operates a 16-hour trading window, which includes pre-market and post-market sessions. Under the new filing, the exchange introduces a distinct overnight period.
According to Nasdaq's own documentation and reports from CNBC, the schedule will generally retain the current "Day Session" from 4:00 a.m. to 8:00 p.m. ET. The significant change is the introduction of a "Night Session" running from 9:00 p.m. to 4:00 a.m. ET. A critical one-hour operational pause from 8:00 p.m. to 9:00 p.m. ET will be reserved for software updates, testing, and clearing house synchronization.
Crucially, the infrastructure to support this is already being fortified. Yahoo Finance reports that the Depository Trust & Clearing Corporation (DTCC) is aligning its operations with this vision, planning to begin clearing equity trades 24 hours a day, five days a week by the second quarter of 2026. This synchronization between the exchange and the clearing house is vital to prevent settlement risks that could arise from overnight volatility.
The push for near-24/7 trading is not merely operational; it is a strategic response to a changing investor landscape. Reuters highlights that Nasdaq is home to global tech giants like Nvidia, Apple, and Amazon-companies that are traded heavily by investors in time zones far removed from New York. Currently, investors in Asia must wait for U.S. markets to open or trade derivatives; this move would allow them to trade the underlying assets during their own daylight hours.
"Nasdaq will enable 24-hour trading on the Nasdaq Stock Market... benefitting from the modernization of markets." - Nasdaq Official Statement
Furthermore, the rise of cryptocurrency markets, which operate 24/7 without holidays, has altered investor expectations. CoinDesk notes that the move is an attempt to meet "crypto-era demands," where the concept of a market closing for the night feels increasingly archaic to a younger generation of traders. By expanding hours, traditional finance (TradFi) aims to retain capital that might otherwise flow into decentralized, always-on alternatives.
Despite the strategic logic, the proposal has faced skepticism. TheStreet reports that the plan has sparked a backlash on Wall Street, particularly regarding human capital. The decision to limit trading to 23 hours a day, rather than a full 24/7 cycle, was partly a concession to preserve "basic human rest" and allow for critical system maintenance. There are concerns that an always-on market could exacerbate burnout among traders and analysts who already work grueling hours.
Retail sentiment also appears mixed. Discussions on platforms like Reddit suggest that average investors feel the change "makes no difference" to them, as they are not glued to screens overnight. However, experts argue that while individual retail traders may not stay up all night, the liquidity provided by institutional overnight trading ultimately benefits the broader market by reducing gap-opening volatility.
The approval of this proposal would have far-reaching implications across several sectors:
Business and Liquidity: By matching trading hours with Asian and European markets, Nasdaq aims to capture volume that currently leaks into fragmented derivatives markets or foreign exchanges. This could lead to tighter spreads and more efficient price discovery for major U.S. tech stocks.
Technology and Infrastructure: The move puts immense pressure on banking technology. Systems designed for batch processing during overnight downtime must be re-architected for real-time, continuous operation. The DTCC's 2026 timeline for 24/7 clearing indicates that the plumbing of the financial system is undergoing a massive, albeit quiet, overhaul.
Regulatory Precedent: As noted in Nasdaq's filing documents, other entities like the 24X National Exchange have recently received attention for similar initiatives. However, Nasdaq's entry into this space legitimizes the concept for mainstream equities, potentially forcing the NYSE and other competitors to follow suit to avoid losing market share.
The ball is now in the SEC's court. Regulators must weigh the benefits of increased access against the risks of market manipulation in low-liquidity overnight environments and the operational stability of the financial system. If approved, the rollout will likely be gradual, with the DTCC's full clearing capabilities coming online in 2026.
For the investor in Tokyo, London, or a sleepless trader in New York, the message is clear: the U.S. stock market is no longer a 9-to-5 business. It is evolving into a global, always-on utility, mirroring the digital world it serves.
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