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Nasdaq is preparing to extend its trading hours, aiming to introduce 24-hour, five-day-a-week trading by the second half of 2026—pending regulatory approval. Tal Cohen, Nasdaq’s head of North American markets, presents this as a logical next step in making markets more accessible and efficient for global investors.

The reasoning behind this move is clear. With financial literacy on the rise and digital trading platforms enabling easier access, investors from regions like Asia-Pacific are increasingly looking to trade U.S. stocks. Foreign holdings of U.S. equities have nearly doubled since 2019, reaching 17 trillion dollars. An extended trading cycle, Nasdaq argues, will allow these investors to engage with the market at times that suit them.

However, not everyone agrees that 24-hour trading is a step in the right direction. Critics argue that it does not necessarily improve market efficiency and could lead to more speculation rather than long-term investment. 

‘Thoughtful direction of capital’

Stuart Dunbar, a partner at Edinburgh-based Baillie Gifford, is particularly skeptical. 

“Investing used to mean the thoughtful direction of capital into real-world projects that have the potential to produce a return by providing goods or services that people want to buy,” Dunbar told Investment Officer. “What this has to do with 24-hour trading on stockmarkets is beyond me.”

The concern is that extending trading hours might benefit high-frequency traders and retail speculators more than long-term investors. Some argue that non-stop trading could make markets noisier and more volatile, with higher trading costs during off-peak hours.

Around-the-clock trading could be a recipe for poor decision-making, said finance lawyer Michael Neff in a comment on Linkedin. “I think this is a bad idea. I don’t see the necessity of being open 24 hours. I do see the need for sleep. Trading stocks is emotional because it is money-driven. Being exhausted and emotional is a multiplier for bad decisions.”

Nasdaq’s own research shows that many listed companies are hesitant. One key question is how companies will handle earnings announcements and other critical disclosures if the market never closes. Today, companies plan such announcements around a predictable market cycle, allowing investors time to process information. If trading hours are continuous, the risk is that information will be released in a disjointed manner, potentially leading to greater uncertainty.

NYSE seen as the benchmark

Technical analysts also have concerns. One specialist noted that traditional trading patterns, such as daily candlestick charts, could lose their relevance if trading hours become continuous. However, Amsterdam-based analyst Julius de Kempenaer countered that NYSE trading hours would likely remain the benchmark for defining the trading day.

Dunbar also raises concerns about the unintended consequences of extended trading hours. “Market efficiency is supposed to be about bringing together equally informed willing buyers and sellers to transact at low cost via a mutually agreed price. In theory 24-hour trading increases the window of opportunity for this to happen; in practice it’s more likely another destructive step in the relentless gamification of stockmarkets.”

Nasdaq acknowledges that making this change requires industry-wide coordination. The U.S. equities market already processes millions of transactions per second. Expanding trading hours would mean ensuring that all market participants—regulators, brokers, and infrastructure providers—are aligned. It also raises questions about how clearing and settlement systems would handle the increased workload.

Wider spreads, more expensive

Some brokers, such as Interactive Brokers and Robinhood, already offer extended trading hours, and the New York Stock Exchange has explored similar ideas. But past attempts at around-the-clock stock trading have struggled to gain traction. Volumes during existing extended hours remain low, and bid-ask spreads are often wider, making trading more expensive.

Nasdaq’s push for round-the-clock trading may appeal to retail traders and algorithmic trading firms looking for new opportunities. But whether this shift genuinely improves markets or simply fuels more speculative trading remains to be seen. 

As Dunbar put it, “24-hour trading has nothing to do with serious investment and I think it’s depressing.”

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