Nasdaq’s round-the-clock trading dream sparks debate over when markets ‘close’: What SEC suggests
The SEC has approved Nasdaq's proposal to expand trading hours for NMS stocks and ETPs to 23 hours, starting December 6. This change aims to meet global trading demands and will introduce a Night Session, allowing trading between 9 PM ET and 4 AM ET.
Nasdaq is moving closer to around-the-clock stock trading, as SEC last month approved its proposal to extend its trading hours for NMS stocks and exchange-traded products. If implemented, this move could prompt other exchanges to follow suit.
Nasdaq, whose flagship eponymous exchange host some of the world's largest technology companies, expects the expanded trading to begin on December 6, subject to regulatory approvals.
But the critical question is, when it come to round-the-clock trading how do markets determine the end of one trading day and the start of the next?
How do markets determine the end of one trading day and the start of the next?
A Tabforum article explains it should not be midnight. Stock markets around the world operate on different schedules. When it is midnight in the US, markets in Australia, Japan, and Korea are already open. But there is a brief period after the US market closes when no major exchanges are open. Japan and Korea, for example, don’t open until 10 p.m. NY time.
Given the global trading patterns, it could make sense to pause the market earlier in the evening and start the next trading day before midnight.
What SEC suggested?
The SEC has approved a proposal by the Nasdaq to expand trading hours for NMS stocks and exchange-traded products (ETPs) from the current 16 hours a day to 23 hours a day, five days a week.
Trading will be split into two sessions — a Day Session from 4:00 AM ET to 8:00 PM ET, and a new Night Session from 9:00 PM ET to 4:00 AM ET the next day.
Trading will pause daily between 8:00 PM ET and 9:00 PM ET for maintenance, testing and processing corporate actions such as mergers, stock splits and dividends.
The trading week will commence with a Night Session on Sunday nights at 9:00 PM ET, and will end at the conclusion of the Day Session on Friday.
Why stock markets are pushing for extended trading hours?
Factors such as globalization, technology upgrades, and market demand are driving the push for longer trading hours. Noting that there's a high demand for US stocks and investors worldwide want to trade during their own waking hours, Giang Bui, Nasdaq’s head of U.S. Equities & Exchange-Traded Products, said, as quoted by CoinDesk, “We definitely see that this is where the markets are moving.”
He also pointed out that the rise of crypto and decentralized finance (DeFi) has raised expectations for round-the-clock market access. In fact, “there's a number of US brokers that already are offering overnight trading because their customers are used to trading crypto in those hours,” he added.
About the Author
Sanchari Ghosh is an Assistant Editor at Mint with over 12 years of experience in journalism, specialising in personal finance, DLT & DeFi, geopolitics and foreign policy, with a particular emphasis on how these areas intersect. <br> She writes extensively about how money works in everyday life—helping readers navigate personal finance decisions. <br> As AI reshapes investing behaviour, capital is increasingly flowing into decentralized ecosystems, redefining how assets are managed, traded, and valued. She focuses on explaining how money flows within frameworks like Distributed Ledger Technology (DLT), DeFi protocols, and crypto markets—while also exploring what the future of money could look like in a trustless, programmable financial world. <br> She also focuses on immigration-related issues, simplifying complex topics around visas, passports, overseas financial planning, and the many practical challenges Indians face while moving or living abroad. <br> Alongside personal finance, Sanchari has a strong understanding of international politics, contemporary and historical conflicts, and global state decisions. She closely tracks how geopolitical developments influence economies, markets, and individual financial choices, bringing together finance and global affairs in her reporting. <br> She began her career as a desk editor, which gave her a strong foundation in news writing. Over time, her interest naturally shifted toward personal finance. Before joining Mint in 2020, she worked DNA, The Times of India, Outlook Money, BloombergQuint, and ETMoney. At Mint, she got an opportunity to expand her coverage to include immigration and geopolitical developments while continuing to closely follow personal finance trends and market movements.As a journalist, she is committed to accuracy, intellectual rigour, and fairness. <br> She is an English Major and her work took her across cities including Delhi, Mumbai, and Pune. Living independently from an early age gave her firsthand experience in managing life and money on her own. This practical exposure sparked her strong interest in personal finance. <br> Outside the newsroom, Sanchari is a sports enthusiast who regularly plays lawn tennis and squash. In her younger years, she was also a national-level badminton player.
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