Stock Markets Ready for a Big Change: Trading All Day, Every Day
Nasdaq Plans to Allow 23-Hour Trading
The stock market is on the brink of a significant transformation. Nasdaq, a leading name in the stock market industry, is set to request permission to enable round-the-clock trading. This means traders won't have to wait for the market to open or close—buying and selling stocks will be possible anytime, anywhere.
Current and Future Trading Hours
- Current Hours: 4 a.m. to 8 p.m. (with breaks)
- Proposed Hours: 23 hours a day, five days a week
- Day Session: 4 a.m. to 8 p.m.
- Night Session: 9 p.m. to 4 a.m. (next day)
- Maintenance Break: 1 hour
Why the Change?
The demand for extended trading hours is on the rise. More investors want the flexibility to trade outside regular hours, especially overnight. Currently, traders seeking 24/7 access rely on other platforms, but Nasdaq aims to bring this convenience directly to its own platform.
Concerns from Big Banks
Not everyone is thrilled about this change. Some major banks have raised concerns about:
- Lower liquidity
- Higher volatility
- Uncertainty over returns
They argue that continuous trading might not be beneficial. However, Nasdaq remains confident in its ability to manage the increased traffic and operational demands.
A Step Towards Globalization
This shift aligns with the broader trend of globalization in the stock market. As more international investors participate in U.S. markets, the need for flexible trading hours grows. Nasdaq is responding to this demand by making trading more accessible on a global scale.
