Global investment enthusiasm for US stocks remains "unquenchable," Nasdaq plans to offer round-the-clock trading services

According to the Zhitong Finance APP, the Nasdaq Stock Exchange plans to launch a 24-hour trading service, attempting to capitalize on the growing global demand for U.S. stocks. Tal Cohen, president of Nasdaq, revealed that the second-largest securities exchange operator in the U.S. plans to extend trading hours for five trading days a week. In an article posted on LinkedIn, Cohen stated that it is expected to start around the second half of 2026, pending regulatory approval and consensus with other industry participants.

Previously, other exchanges have also taken action: Cboe Global Markets Inc. announced last month that it plans to extend trading hours for its stock exchanges to 24 hours a day, five days a week, after obtaining regulatory approval. The New York Stock Exchange also submitted an application last October to extend its trading hours on weekdays to 22 hours.

Cohen pointed out that individual investors in different time zones are increasingly interested in the U.S. market. However, he also cautioned that the market and investors need to consider the risks that extended trading hours may bring, such as increased volatility and rising trading costs. Cohen noted that although after-hours trading has increased, market liquidity during these periods remains "significantly lower."

The implementation of these plans also relies on upgrades to the Securities Information Processor (SIP). The SIP displays the best bid and ask prices for stocks on the exchange during trading. To achieve nighttime trading on public stock trading platforms, this data needs to be updated to accommodate the extended trading hours.

Cohen stated that Nasdaq will collaborate with other industry participants to mitigate these concerns and risks. According to a spokesperson, Nasdaq is forming a team to advance this matter.

Cohen said, "The question is not whether we can create a market that operates 24 hours a day, five days a week, but how to achieve this in a way that enhances investor confidence in the current U.S. capital markets."

During the pandemic, extended trading hours became more common, allowing investors to quickly respond to market-impacting events. Companies like Robinhood (HOOD.US) and Interactive Brokers (IBKR.US) began allowing customers to trade U.S. stocks 24 hours a day, five days a week through over-the-counter trading platforms like Blue Ocean’s alternative-trading system.

The platforms that allow continuous trading of stocks have sparked differing opinions on Wall Street. Supporters argue that both domestic and overseas investors want to react to market changes and trade stocks outside of U.S. market hours. Opponents warn that reduced trading volume may affect trade quality, leading to less accurate pricing.

Currently, most trading activity on major U.S. securities exchanges is still concentrated during opening and closing periods. With the extension of trading hours, a pending question is whether institutional traders will trade outside of high-volume periods