“Round-the-clock trading is fast approaching U.S. stock markets, but not all of Wall Street is embracing the move.” That tension is becoming increasingly clear as major exchanges prepare for a significant expansion of trading hours, even while some of the largest U.S. banks remain cautious about the costs and risks involved.
Momentum accelerated this week after Nasdaq filed plans with regulators to extend weekday trading to 23 hours a day. The proposal follows steps already taken by the New York Stock Exchange, which last year announced it would allow 22 hours of weekday trading on its Arca equities platform, a move approved by the Securities and Exchange Commission earlier this year. Together, the initiatives signal a shift toward nearly nonstop weekday trading on major U.S. exchanges for the first time.
Supporters argue the change reflects growing global demand for access to U.S. capital markets, particularly from investors based in Asia and Europe who want the ability to react to news outside traditional U.S. market hours. Regulators have also shown greater openness to extended trading as part of broader efforts to modernise market structure.
Yet behind the scenes, several large banks are reluctant to push aggressively into round-the-clock stock trading. Executives at firms including JPMorgan, Bank of America and Morgan Stanley have privately raised concerns about the scale of investment required, which could run into tens of billions of dollars, with no certainty of a swift payoff. Analysts note that banks and brokers would need to upgrade technology, staffing and risk controls to support overnight trading.
Risk management remains a central concern. Bank of America’s Sonali Theisen has said firms must ensure safeguards are in place to manage major market-moving events before extended trading becomes widespread. Thin liquidity during overnight sessions is another worry. Market participants caution that lower volumes could lead to wider bid-ask spreads, more volatile price moves and higher trading costs.
Some institutional players question whether demand is strong enough to justify the effort. Brian Suth of Evercore ISI said he does not currently see broad institutional appetite for overnight equity trading, while BlackRock has warned that reduced liquidity outside core hours could affect execution quality.
Even so, preparation is under way across the market’s infrastructure. A successful launch of near-continuous trading, targeted for late 2026, depends on upgrades to the securities information processor that consolidates stock prices, as well as changes at the Depository Trust and Clearing Corporation, which plans to introduce nonstop stock clearing by the same period. DTCC estimates that extended hours could account for between 1% and 10% of U.S. equity trading volume by 2028.
Retail-focused firms are more enthusiastic. Robinhood’s Steve Quirk has said around-the-clock trading is approaching quickly, while Citadel Securities has signalled it will provide liquidity if investors want to trade outside regular hours. Some executives believe overnight trading could become a sizeable business over time, even if adoption is gradual.
For now, the industry remains split, balancing long-term opportunity against immediate cost and uncertainty as U.S. markets edge closer to a near-24-hour future.
