Revolutionizing Trading: Nasdaq’s Plan for 24-Hour Trading
Nasdaq is gearing up to revolutionize the traditional trading landscape by introducing 24-hour trading by the second half of 2026. This move, inspired by the nonstop activity of the crypto market, aims to provide greater accessibility and inclusivity to investors worldwide.
The Vision of Nasdaq President Tal Cohen
Nasdaq President Tal Cohen recently confirmed the development on March 7, highlighting ongoing discussions with regulators, market participants, and infrastructure providers. The ultimate goal is to extend trading hours to five days a week without interruptions, but this transition necessitates regulatory alignment and collaboration with industry stakeholders.
Driving Forces Behind the Shift
According to Cohen, the decision to shift to 24-hour trading is fueled by a surge in global retail investment. The influx of investors from international markets into the US stock market, driven by lower barriers and increased interest in assets like exchange-traded funds (ETFs), has been a key driving force.
- Foreign ownership of US equities has nearly doubled in recent years, reaching $17 trillion by mid-2024.
- Growing demand for greater market accessibility underscores the need for extended trading hours.
In Cohen’s words, “Investors from the APAC region are increasingly drawn to US markets for opportunities, regulatory strength, and access to high-growth sectors like technology and healthcare.”
Challenges and Opportunities
While the extended trading hours aim to accommodate international investors and enhance market inclusivity, challenges such as low liquidity and volatility in after-hours trading need to be addressed. Cohen acknowledges the need for seamless coordination, planning, testing, and implementation to navigate these challenges successfully.
Despite concerns, Cohen expresses confidence in Nasdaq’s technological capabilities to support 24-hour trading seamlessly.
The Influence of Cryptocurrency
Nasdaq’s move towards 24-hour trading aligns with the continuous trading model of the crypto industry, which operates 24/7 without centralized restrictions. Some experts believe that blockchain technology has played a significant role in shaping Nasdaq’s decision, bringing traditional finance closer to the DeFi model of real-time, barrier-free trading.
“Markets never sleep. Nasdaq’s move toward 24-hour trading mirrors what crypto & DeFi have proven for years—continuous markets drive efficiency, liquidity, and global access. The future isn’t just non-stop trading; it’s real-time, permissionless, and on-chain.” – Mike Cahill, CEO of Oracle Network Pyth
