Nasdaq to Launch 24/7 Trading by 2026 Amid Growing Global Demand

Regulatory Approval Pending

Nasdaq plans to file with the US Securities and Exchange Commission (SEC) to implement round-the-clock trading, five days a week. This strategic move aims to capture the growing demand from global investors for US stocks. The plan reflects the increasing globalization of US financial markets, with Nasdaq President Tal Cohen stating that discussions with regulators are already underway.

Market Context and Rationale

The US stock market currently represents nearly two-thirds of global market capitalization, making it a focal point for international investors. Foreign ownership of US stocks has surged to approximately $17 trillion as of 2024, demonstrating the strong global appetite for US equities. This demand has been particularly evident in after-hours trading, which has seen significant growth in recent years.

Implementation Timeline

Nasdaq aims to launch the 24/7 trading platform in the second half of 2026, following SEC approval. The exchange has already engaged in preliminary discussions with regulators, positioning itself for a timely implementation. Other major US exchanges, including the New York Stock Exchange (NYSE) and Cboe Global Markets, are also exploring similar initiatives.

Market Impact

The shift to continuous trading is expected to enhance market liquidity and provide greater flexibility for investors across different time zones. Nasdaq's Chuck Mack, Senior Vice President for North American Markets, noted that the demand from foreign investors for US stocks listed on Nasdaq is continuously increasing. This development is likely to further solidify Nasdaq's position as a global trading hub.