Nasdaq moves to make trading nearly 24 hours. Why some on Wall Street say that's a bad idea
Critics argue that formalizing nearly nonstop trading could worsen some of the very problems that plague the structure of equity markets today.
TL;DR
- Nasdaq plans to submit paperwork to the SEC for nearly 24-hour trading, five days a week, potentially launching in late 2026.
- The proposed schedule expands weekday trading to 23 hours, with a day session from 4 a.m. to 8 p.m. ET and a night session from 9 p.m. to 4 a.m.
- Critics argue this could worsen liquidity, price swings, and create a more 'gamified' trading environment.
- Some experts believe extended hours might remove crucial downtime for companies to release news and for markets to digest information.
- Retail brokers like Robinhood already offer extended trading hours, responding to demand from individual investors.
- The New York Stock Exchange is also pursuing extended trading hours, with initial SEC approval for a 22-hour weekday model.