Nasdaq plans near round-the-clock trading to tap global demand for U.S. stocks

Core Viewpoint - Nasdaq is planning to submit paperwork to the U.S. Securities and Exchange Commission to implement round-the-clock trading of stocks, aiming to meet the growing global demand for U.S. equities [1][2]. Group 1: Trading Hours Expansion - Nasdaq intends to extend trading hours from 16 hours to 23 hours, five days a week, transitioning from three daily sessions to two [4]. - The new trading schedule will start on Sunday at 9 p.m. and end on Friday at 8 p.m., with a one-hour break for maintenance and clearing of trades [6]. Group 2: Market Demand and Globalization - There has been a significant increase in investor demand for nonstop trading in U.S. stocks, with total foreign holdings of U.S. equities reaching $17 trillion last year [2]. - The U.S. stock market accounts for nearly two-thirds of the global market value of listed companies, indicating its importance in the global financial landscape [2]. Group 3: Regulatory and Operational Considerations - Nasdaq's filing with the SEC represents its first formal step towards implementing round-the-clock trading, with expectations to launch in the second half of 2026 [2]. - Successful implementation will depend on upgrades to the securities information processor and the U.S. Depository Trust and Clearing Corp.'s rollout of nonstop clearing by the end of 2026 [6]. Group 4: Investor Behavior and Market Dynamics - Advocates for round-the-clock trading argue it will enable investors, particularly those outside the U.S., to respond more swiftly to market developments [7]. - Despite the demand for extended trading hours, major Wall Street banks express caution due to concerns about liquidity, volatility, and investment returns [7][8].