Nasdaq Inc is the latest to join the round-the-clock trading bandwagon. “Nasdaq will enable 24-hour trading on the Nasdaq Stock Market. Pending regulatory approval and alignment with critical industry infrastructure providers, we anticipate our timeline being in the second half of 2026,” its President, Tal Cohen, said in a LinkedIn post
“The global growth of investor demand for US equities means we stand at another pivotal moment for our markets — to broaden investor access, expand wealth-building opportunities, and redefine how markets function,” he added.
Earlier, on February 3, Cboe Global Markets Inc had announced its plans to offer 24-hour, five-days-a-week (24×5) trading for the US equities on its Cboe EDGX Equities Exchange (EDGX), subject to regulatory review and industry developments. “The proposed expansion aims to meet growing global customer demand for expanded access to US equities markets,” it stated.
Similarly, in October 2024, the New York Stock Exchange (NYSE) disclosed plans for a 22-hour trading window, which received SEC approval in February. However, the exchange still faces additional regulatory steps before implementation.
It’s not just a US phenomenon. The domestic bourses, BSE and NSE, have also been seeking Securities and Exchange Board of India’s (SEBI) approval for extended trading hours.
Clamour from NSE, BSE
When the NSE (National Stock Exchange) wanted to introduce extended trading hours in a phased manner by allowing derivative products initially, SEBI rejected the proposal, citing a lack of feedback from the stock brokers community.
In 2018, SEBI allowed stock exchanges to set their trading hours in the equity derivatives segment between 9 am and 11.50 pm. “With a view to enable integration of trading of various segments of securities market at the level of exchanges, it has been decided to permit stock exchanges to set their trading hours in the equity derivatives segment between 9:00 am and 11:55 pm, similar to the trading hours for commodity derivatives segment which are presently fixed between 10:00 am and 11:55 pm, provided that the stock exchange and its clearing corporation(s) have in place risk management system and infrastructure commensurate to the trading hours,” it had then said.
However, every attempt by the exchanges for extending the trading hours has been strongly resisted by brokerages so far.
Gift City trading
Both major exchanges — BSE (through India INX) and the NSE (NSE International Exchange) — in Gift City offer products for 22 hours that included index and single stock derivatives, commodity derivatives, currency derivatives, global stocks and debt securities.
With the global majors now pitching aggressively for extended trading hours, one can expect similar moves by domestic exchanges once again. From the traders perspective, it would offer an opportunity to react quickly to emerging market/stock moving news and events. However, for long-term investors, it will not make a much of difference.
For exchanges, it will help them boost trading volumes. That said, empirical evidence suggests major trading activity is concentrated during peripheral hours — at the opening and towards closing.
This could also put pressure on brokerages to expand their back office infrastructure. Extended trading hours would not only cost them financially but also place huge stress on their back office staff.
Extended trading hours need consensus and everyone should be on board, especially the brokerages, which serve as the most important link between the exchange and investors. While this may not happen any time soon, but the prospect of it means, interesting days are ahead in trading.
Published on April 4, 2025
