Nasdaq presents: trading 23 hours a day, five days a week

The Nasdaq stock exchange intends to extend trading hours in the US to nearly 23 hours, five days a week. The move is designed to meet the growing global demand for US stocks.

According to the announcement released by the exchange, the extended schedule will add a new night trading session between 21:00 and 4:00, Eastern Time. Nasdaq currently operates three daily sessions: pre-market (4:00–9:30), regular market (9:30–16:00), and after-hours (16:00–20:00).

With the transition to 23 hours of trading five days a week, the exchange will operate two sessions: a day session that will take place between 4:00 and 20:00, with a one-hour break for maintenance, testing, and clearing, and a night session between 21:00 and 4:00. The day session will include the opening bell at 9:30 and the closing bell at 16:00, while trades in the night session will be considered part of the next trading day. The new trading week will begin on Sunday at 21:00 and end on Friday at 20:00. In other words, Nasdaq's regular trading hours between 9:30 and 16:00 will remain unchanged.

The addition is scheduled to take effect on December 6, but it still needs to receive approval from the US Securities and Exchange Commission (SEC). The exchange also intends to add additional protection measures for night trading, including range settings that will reject orders that bypass the restrictions.

Nasdaq revealed the plans for 23-hour trading back in December. At the time, supporters of the move argued that it would allow investors, especially those outside the US, to react quickly to developments occurring outside of regular trading hours. However, institutional investors trading on Wall Street expressed concern about lower liquidity, high volatility, and uncertainty regarding investment returns.