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Wall Street Prepares for 23-Hour Stock Trading Days
16 Dec
Summary
- US stock markets are moving towards 23-hour weekday trading soon.
- Major US banks express reluctance due to investment costs and risks.
- Exchanges are filing for regulatory approval for extended hours.
U.S. stock markets are rapidly approaching a future of nearly round-the-clock trading, with exchanges actively preparing for a broad rollout by late 2026. Nasdaq has officially filed with regulators to extend trading hours to 23 hours per weekday, a move aimed at providing greater global investor access to U.S. capital markets.
Despite these advancements, significant apprehension exists among major U.S. banks. Executives at institutions like JPMorgan, Bank of America, and Morgan Stanley have voiced concerns regarding the substantial investment required and the lack of guaranteed financial returns. Some view the expansion as a "nuisance" rather than a revenue driver, emphasizing the need for robust risk management protections before full implementation.
Proponents argue that extended hours will benefit international investors by allowing quicker reactions to global news. However, market experts warn of potential issues such as thin overnight liquidity, less precise pricing, and increased volatility, as highlighted by BlackRock. Despite these challenges, exchanges are laying the groundwork, with the New York Stock Exchange also proposing 22-hour trading days, signaling a significant transformation in market operations.
