Nasdaq moves to make trading nearly 24 hours. Why some on Wall Street say that's a bad idea

Proposed Trading Hours

23 hours

Nasdaq plans to extend trading from the current 16 hours to 23 hours on weekdays.

Launch Timeline

Second half of 2026

The new trading schedule is expected to launch if approved by the SEC.

Current Trading Sessions

3 sessions

Nasdaq currently operates three weekday sessions: pre-market, regular, and after-hours trading.

§ 01 Executive Snapshot

What: Nasdaq is moving towards nearly 24-hour trading for U.S.-listed equities and ETFs.
Who: Nasdaq, Securities and Exchange Commission (SEC), Wells Fargo, Freedom Capital Markets.
Why it matters: This proposed shift could significantly alter market dynamics, raising concerns about liquidity and market stability.

Nasdaq plans to submit paperwork to the SEC to allow nearly 24-hour trading, expanding from 16 to 23 hours on weekdays.
The new trading schedule, if approved, aims to launch in the second half of 2026, with a one-hour pause for maintenance.
Critics, including Wells Fargo's trading desk, argue that this change could worsen market issues like thin liquidity and volatility.

The proposal comes as retail-focused brokers like Robinhood have already implemented near-24-hour trading, responding to investor demand for flexibility.
The New York Stock Exchange is also exploring extended trading hours, with initial SEC approval for a 22-hour model, indicating a broader industry trend towards longer trading periods.

Immediate concerns include potential increases in market volatility and the risk of a gamified trading environment, leading to unpredictable price swings.
Long-term implications could affect how listed companies manage news releases and market presence, with less time for strategic pauses in trading.

Regulatory approval from the SEC is uncertain, and the proposal could face pushback from various market participants.
Increased operational demands may require firms to staff trading desks around the clock, raising costs and logistical challenges.

Watch for SEC's response to Nasdaq's proposal, which could set precedents for trading regulation.
Monitor trading volume patterns to see if extended hours attract participation or reinforce existing liquidity clustering around market open and close.

§ 07

What is Nasdaq planning to do regarding trading hours?

Nasdaq is moving towards nearly 24-hour trading for U.S.-listed equities and ETFs, expanding from 16 to 23 hours on weekdays.

Why are some critics opposed to Nasdaq's proposal for extended trading hours?

Critics, including Wells Fargo's trading desk, argue that the change could worsen market issues like thin liquidity and volatility.

When is Nasdaq aiming to launch the new trading schedule?

The new trading schedule, if approved, aims to launch in the second half of 2026.

Who needs to approve Nasdaq's proposal for nearly 24-hour trading?

The proposal requires regulatory approval from the Securities and Exchange Commission (SEC).