In a move that signals the most significant structural shift in American equity markets in decades, the financial world is bracing for a "23-hour" trading day. As of February 25, 2026, Nasdaq Inc. (Nasdaq: NDAQ) is in the final stages of a high-stakes regulatory review with the Securities and Exchange Commission (SEC) to extend trading hours for all equity securities and Exchange-Traded Products (ETPs). This proposal, which would essentially eliminate the concept of "market close" for the vast majority of the week, reflects an industry-wide scramble to modernize the U.S. financial system for a digital, globalized era.
The immediate implications are profound: the proposal aims to bridge the gap between U.S. markets and investors in Europe and Asia, while simultaneously challenging the dominance of 24-hour retail platforms and alternative trading systems. If approved, the shift would transform the traditional 9:30 AM to 4:00 PM ET trading window into a relic of the past, forcing institutions, retail brokers, and clearinghouses to overhaul their operations to support a market that—much like the cryptocurrency world—hardly ever sleeps.
A New Era of Continuous Commerce
The journey toward a nearly round-the-clock market accelerated rapidly in late 2025. On December 15, 2025, Nasdaq formally submitted rule changes to the SEC, followed by a supplemental filing on December 29 (SR-NASDAQ-2025-109). By January 13, 2026, the proposal was published in the Federal Register, triggering a public comment period that concluded earlier this month on February 3. The SEC, currently led by Chair Paul Atkins, is expected to issue a final decision by late March or early April 2026.
Under the proposed framework, Nasdaq will collapse its current three-session structure into two primary blocks. The "Day Session" will run from 4:00 AM to 8:00 PM ET, encompassing the current pre-market, regular, and post-market hours. This will be followed by a newly minted "Night Session" from 9:00 PM to 4:00 AM ET. The one-hour gap between 8:00 PM and 9:00 PM ET is a mandatory "technical pause" designed for system maintenance, trade clearing, and the processing of corporate actions like stock splits. The trading week would begin Sunday at 9:00 PM ET and run continuously until Friday at 8:00 PM ET.
This evolution is not happening in a vacuum. In early 2025, the Intercontinental Exchange (NYSE: ICE) received preliminary approval for its own 22-hour trading day on the NYSE Arca exchange. Nasdaq’s move to 23 hours is a direct competitive response, aimed at ensuring that the "home of big tech" remains the primary venue for global price discovery. Key stakeholders, including the Depository Trust & Clearing Corporation (DTCC), have already begun preparing for this shift, with the National Securities Clearing Corporation (NSCC) targeting mid-2026 for the implementation of 24x5 clearing capabilities.
The Winners and Losers of the Overnight Shift
The transition to near-24/7 trading creates a clear divide between firms equipped for high-frequency, global operations and those still tethered to traditional hours. Market makers like Virtu Financial (Nasdaq: VIRT) and the privately-held Citadel Securities are positioned as major winners. These firms thrive on volume and volatility; an additional 50-plus hours of trading per week provides a massive new playground for their automated liquidity-providing algorithms. As the "plumbing" of the market, these firms will likely capture the lion's share of the spread during the thin-liquidity hours of the 2:00 AM ET graveyard shift.
Retail-focused brokerages that have already embraced the "always-on" philosophy, such as Robinhood Markets (Nasdaq: HOOD), also stand to gain. Robinhood was an early pioneer of 24/5 trading through its partnership with Blue Ocean ATS, and a standardized exchange-based 23-hour day would lower their operational hurdles and potentially improve execution quality for their users. Similarly, Charles Schwab (NYSE: SCHW) expanded overnight access to its entire thinkorswim client base in February 2025, positioning itself to capitalize on the surge in retail interest.
Conversely, the "losers" in this scenario may be smaller, regional broker-dealers and traditional asset managers. These firms face a daunting logistical challenge: staffing trading desks and compliance teams to monitor markets at 3:00 AM. Unlike the giants, these smaller players may struggle with the increased overhead costs, leading to further industry consolidation. Furthermore, critics—including analysts at major investment banks—have warned that retail investors may be the ultimate losers if they are lured into trading during low-liquidity overnight sessions, where wider bid-ask spreads can lead to significantly higher transaction costs and increased vulnerability to "flash crashes" triggered by geopolitical news.
The "Amazon-ification" of the Global Market
The shift toward 23-hour trading is the inevitable result of the "Amazon-ification" of finance—a world where consumers expect instant, 24/7 access to everything from groceries to Apple (Nasdaq: AAPL) stock. This trend has been heavily influenced by the cryptocurrency market, which has operated 24/7/365 since its inception. Traditional investors, particularly the younger demographic, have grown increasingly frustrated by "gaps" in trading where significant news breaks on a Saturday or at midnight, but they are unable to react until the opening bell on Monday morning.
From a regulatory perspective, the SEC under Paul Atkins has signaled a more "market-first" approach, focusing on American competitiveness. By allowing Nasdaq and NYSE to extend their hours, the SEC is effectively "onshoring" trading that was previously leaking to offshore venues or unregulated dark pools. Historically, the U.S. has moved toward longer hours in increments—moving from a 3:30 PM close to 4:00 PM in the 1980s, and introducing after-hours trading in the late 1990s. Each of these shifts was met with skepticism about liquidity, yet each eventually became the standard.
However, the ripple effects extend beyond the U.S. borders. A 23-hour Nasdaq would put immense pressure on European and Asian exchanges, such as the London Stock Exchange or the Tokyo Stock Exchange, to follow suit or risk losing local volume to U.S.-listed ADRs. This creates a global arms race for liquidity that could permanently alter the workday for every financial professional on the planet.
The Road Ahead: 2026 and Beyond
In the short term, the market's focus will remain on the "plumbing." Even with SEC approval, Nasdaq’s 23-hour vision cannot fully materialize until the Securities Information Processor (SIP) is fully operational overnight to provide consolidated market data. If the SIP and DTCC meet their mid-2026 targets, we could see the first 23-hour "live" days by the fourth quarter of 2026. This period will likely be a testing ground, characterized by low volumes and high volatility as participants figure out the "new normal" of the 9:00 PM ET opening.
Looking further ahead, the long-term goal is likely a full 24/7/365 market. If the 23-hour model succeeds without major systemic shocks, the final hour of maintenance and the weekend break will be the last remaining barriers. Strategic pivots are already occurring; expect to see a surge in AI-driven trading tools designed to help humans manage their portfolios while they sleep, and a shift in how public companies release earnings. The "after-bell" earnings dump at 4:05 PM may become obsolete if the market never truly closes.
The most significant challenge remains the "liquidity trap." If trading volume is spread too thin across 23 hours, the price discovery process could become fragmented and less reliable. Market participants will need to adapt by using more sophisticated limit orders and algorithmic protections to navigate the quieter hours of the night session.
A Final Assessment of the Perpetual Market
Nasdaq’s proposal is more than just a technical tweak; it is a fundamental redesign of the relationship between time and capital. The move acknowledges that in a world of instant global communication, the concept of "closing" a market is an anachronism. For the market at large, this shift promises greater accessibility for the $17 trillion in U.S. equities held by international investors and a more responsive price discovery mechanism for all.
However, the transition will not be without its growing pains. Investors should watch closely for the SEC’s final ruling in March 2026 and, more importantly, the technical readiness of the DTCC and SIP in the coming months. The success of this initiative will hinge on whether liquidity can follow the expanded hours, or if the "Night Session" remains a volatile niche for high-speed algorithms and speculative retail bets.
As we move toward the second half of 2026, the primary metric of success will be the stability of the overnight spreads. If the gap between "buy" and "sell" prices remains narrow during the early morning hours, the 23-hour market will have proven its worth. If not, the industry may find that while you can keep the doors open all night, you can't always force the customers—or the liquidity—to show up.
This content is intended for informational purposes only and is not financial advice
