The Demand for Continuous Trading
As the global trading landscape evolves, investors are increasingly seeking the flexibility to buy and sell assets around the clock. In response to this growing demand, two of the largest stock exchanges in the United States, Nasdaq and the New York Stock Exchange (NYSE), are actively working towards implementing round-the-clock trading options.
Giang Bui, Nasdaq’s head of U.S. Equities & Exchange-Traded Products, shared insights at the recent Digital Asset Summit in New York, stating, “We definitely see that this is where the markets are moving. There’s a lot of demand globally for U.S. stocks, and people want to trade within the hours that they’re typically awake. A significant factor contributing to this shift is the familiarity and expectation of 24/7 trading that comes from the cryptocurrency market.”
Regulatory Approvals and Market Readiness
Both Nasdaq and the NYSE are currently seeking the necessary approvals to facilitate continuous trading, potentially extending their operating hours to 24 hours a day, five or even seven days a week. Nasdaq has taken steps to engage with regulatory bodies regarding this transition, while the NYSE has reportedly already received permission to proceed.
The Benefits of Round-the-Clock Trading
Implementing round-the-clock trading could offer several advantages to the financial markets. Notably, it can lead to increased trading volume and enhanced market liquidity, as traders will no longer be restricted by time zones. Presently, U.S. stock markets operate from 9:30 a.m. to 4 p.m. ET, limiting trading opportunities for many investors.
Bui elaborated on the demand for extended trading hours, noting, “We’re hearing it across the board from global broker-dealers and their clients. Even within the U.S., numerous brokers are already providing overnight trading options because their customers have become accustomed to trading during those hours, largely influenced by the crypto market.”
Nasdaq’s Expanding Crypto Product Offerings
In addition to its plans for extended trading hours, Nasdaq has been actively involved in the cryptocurrency sector. The exchange offers various crypto-related financial products, including the iShares Bitcoin Trust (IBIT) and a recently launched spot ETF issued by BlackRock—marking one of the most successful ETF debuts in U.S. history. Moreover, Nasdaq has also introduced two new Solana (SOL) futures ETFs created by Volatility Shares.
Conclusion
The move towards 24/7 trading by major exchanges like Nasdaq and the NYSE reflects a significant shift in investor expectations influenced by the crypto market. As these exchanges adapt to meet the demands of modern traders, the potential for increased liquidity and trading opportunities presents promising prospects for the financial landscape.
