24/7 Trading Takes Centerstage on Wall Street
Stock exchanges Nasdaq and NYSE transition to round-the-clock trading, altering market accessibility and potential trading activity patterns.
Global investor demands are shifting the financial landscape, with Nasdaq and the New York Stock Exchange (NYSE) else moving towards round-the-clock trading. At the New York Digital Asset Summit, Giang Bui, Head of U.S. Stock and ETF Trading at Nasdaq, announced the initiative, citing increased flexibility and access for global investors as the driving force.
From Nine to Never: The Shift to 24/7 Trading
The push for uninterrupted trading hones in on the cryptocurrency market's 24/7 model, catering to the needs of global investors seeking greater flexibility and access. Nasdaq's plan involves 24-hour trading for five days a week, starting in 2026. To achieve this, Nasdaq is collaborating with regulators and stakeholders, while NYSE has already secured SEC approval for 22-hour daily trading.
Changing the Game: How 24/7 Trading Affects Market Liquidity and Global Investor Access
Impact on Liquidity
The shift to 24-hour trading holds the potential to increase liquidity by enabling continuous trading, reducing overnight risks, and offering more opportunities for arbitrage and price discovery. However, off-peak hours may lead to reduced liquidity, affecting market efficiency and increasing volatility.
Benefits for Global Investors
Extended trading hours will allow global investors to react to market events in real-time, aligning with global market movements. This change could attract more international investors, as it mirrors global market practices and leverages technological advancements.
Other Notable Moves
As the traditional market hours evolve, companies like Blue Ocean Technologies are already offering extended trading hours through alternative trading systems, filling gaps in typical market hours.
Paving the Way for the Future
The move towards 24/7 trading marks a significant shift in the financial industry, presenting opportunities for increased global investment while posing challenges related to liquidity and technological infrastructure. As Nasdaq and NYSE align with the demands of modern digital financial environments, regulatory adaptation is crucial to handle increased trading volumes and varied time-zone activity effectively.
Did you know? The U.S. stock market has adhered to a similar schedule since 1985, operating weekdays from 9:30 a.m. to 4 p.m. ET, underscoring the magnitude of this shift towards extended trading hours.
With Bitcoin's price nearly -1.19% lower over the past 24 hours, currently trading at $84,283.77 on March 20, 2025, and a market capitalization of $1.67 trillion, the digital asset space continues to thrive.
Experts suggest that extended trading hours could democratize U.S. market access, drawing more global investment. Keeping pace with these updates, industry leaders like Tal Cohen, President of Nasdaq, emphasize the critical opportunity to broaden access and expand wealth-building avenues.
Sources:
- Crowdfund Insider
- SEC
- The digital asset space, such as cryptocurrency, could greatly benefit from the increased flexibility and access that comes with extended trading hours, mirroring the 24/7 model.
- Nasdaq's collaboration with regulators and stakeholders to implement 24-hour trading by 2026 may draw more global investors, including the crypto community, who are seeking increased liquidity in the market.
- As Wall Street moves towards 24/7 trading, the focus on tokenomics, business opportunities, and finance associated with cryptocurrency becomes essential for understanding and participating in the evolving market landscape.
