Global Stock Exchanges Move Toward 23-Hour Trading as TASE Eyes Evening Expansion
Global stock exchanges, led by Nasdaq, are moving toward 23-hour trading. Meanwhile, the Tel Aviv Stock Exchange is evaluating evening hours to boost foreign investment and global market integration.
The global financial landscape is undergoing a profound transformation as major stock exchanges prepare for a shift toward nearly round-the-clock trading. Led by Nasdaq, which is slated to introduce extended trading hours pending SEC approval by December, global markets are adapting to changing investor habits and increasing globalization.
The Shift Toward 23-Hour Trading
Nasdaq's proposed schedule aims to extend active trading to 23 hours a day, five days a week, creating a continuous session from Sunday evening through Friday night. According to Chuck Mack, senior vice president at Nasdaq, the move reflects how investor behavior has dramatically shifted, requiring markets to be as accessible as the digital applications investors use daily.
Other major exchanges are following suit. The New York Stock Exchange and the London Stock Exchange are actively advancing plans to lengthen trading hours, while Euronext and South Korea's KRX are exploring similar avenues to capture foreign investment and prevent capital migration to alternative platforms like cryptocurrency.
Implications for the Israeli Market
In Israel, the Tel Aviv Stock Exchange (TASE) and the Israel Securities Authority have established joint working teams to evaluate extending local trading hours into the evening, potentially from 17:30 to 23:00 by 2027.
TASE CEO Itai Ben-Zvi noted that the initiative aims to increase foreign investment and deepen the connection between the local capital market and global exchanges. Analysts point out that longer trading hours would help bridge the gap with Wall Street, allowing Israeli investors to react immediately to macroeconomic reports and corporate earnings released after the local market closes.
"The Israeli stock exchange is relatively small and depends on its ability to attract local and foreign investors, while limited operating hours and restricted overlap with the US create a structural barrier," explained Ziv Ziegelman, head of research at Bank Hapoalim.
Challenges and Industry Concerns
Despite the enthusiasm, market participants warn of potential drawbacks, including lower liquidity during extended hours, wider bid-ask spreads, and increased volatility. Institutional players also express concern over the added pressure on brokerage employees and back-office staff who will need to adapt to new shift patterns and risk management protocols.
