Nasdaq confirms 23-hour trading from December with new overnight session

§ 01 Executive Snapshot

• What: Nasdaq announces plans for nearly 23-hour trading starting December 6, pending SEC approval.
• Who: Nasdaq, SEC, Nasdaq president Tal Cohen.
• Why it matters: This expansion aims to broaden investor access and compete with 24/7 trading platforms, capturing a growing market of foreign equity holdings.

§ 02 Key Developments

• Nasdaq's trading day will run from Sunday evening to Friday evening, with an overnight session from 9 PM to 4 AM ET.
• Foreign holdings of US equities reached $17 trillion by mid-2024, a 97% increase since 2019.
• The move follows similar expansions by competitors like NYSE, which has a 22-hour trading day approved by the SEC.

§ 03 Strategic Context

• Traditional exchanges are facing pressure to extend trading hours to accommodate global market demands and geopolitical events.
• The rise of crypto and decentralized trading platforms has shown that demand for continuous trading exists, prompting exchanges to adapt.

§ 04 Strategic Implications

• Immediate impact includes increased access for retail traders, potentially leading to higher trading volumes during off-peak hours.
• Long-term, Nasdaq aims to evolve towards a fully 24/7 trading model, enhancing its competitiveness against other trading platforms.

§ 05 Risks & Constraints

• Regulatory hurdles remain as the new trading hours are subject to SEC approval.
• Competition from existing 24/7 trading venues could limit Nasdaq's ability to capture market share.

§ 06 Watchlist / Forward Signals

• Expected rollout of the new trading hours on December 6, pending regulatory approval.
• Future developments will be monitored based on the success of this trading model and SEC responses to other exchanges' expansions.