Nasdaq is making ready to introduce 24-hour buying and selling on its platform by the second half of 2026, pending regulatory approval.
Nasdaq seems to be adopting methods from the crypto markets with this initiative. The purpose is to offer buyers extra flexibility, align with world markets, and improve entry to capital. Nasdaq president Tal Cohen acknowledged that the change is working to make sure the mandatory infrastructure and regulatory frameworks are in place earlier than implementation.
The initiative would make Nasdaq the primary main U.S. inventory change to function across the clock, a shift from the standard 9:30 a.m. to 4:00 p.m. Jap Time buying and selling hours.
“We are excited to share that Nasdaq has begun engaging with regulators, market participants and other key stakeholders,” Cohen wrote, “with a view of enabling 24-hour trading five days a week on the Nasdaq Stock Market.”
This implies the markets would nonetheless shut on the weekends.
At present, pre-market and after-hours classes supply restricted prolonged buying and selling. Nasdaq’s 24-hour mannequin may considerably impression market liquidity, permitting buyers to react to world occasions in real-time with out ready for markets to open.
Sustaining liquidity and stopping extreme volatility exterior conventional buying and selling hours would require cooperation amongst exchanges, market makers, and regulators.
Nasdaq is predicted to work intently with the Securities and Trade Fee and different trade stakeholders to navigate these complexities.
Implications for crypto and Bitcoin ETFs
A 24-hour buying and selling mannequin matches up with the crypto market, the place property like Bitcoin (BTC) commerce constantly with out centralized oversight.
The introduction of spot Bitcoin exchange-traded funds in early 2024 has already bridged some gaps between conventional finance and digital property. Nasdaq’s shift may additional combine crypto-related merchandise into mainstream markets.
With spot Bitcoin ETFs, reminiscent of BlackRock’s iShares Bitcoin Belief, gaining traction, the flexibility to commerce these devices in any respect hours may improve liquidity and worth discovery. Bitcoin ETF choices buying and selling has additionally gained momentum, indicating rising institutional curiosity.