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Nasdaq wants investors to be able to trade on the exchange almost 24 hours a day.
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It could introduce a 23-hour trading session in 2026 if the SEC approves its plan.
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Finance pros are mixed. It could enable more people to trade, but also lead to a more uneven playing field.
A major shift may be coming for the stock market in 2026.
Nasdaq is planning to submit paperwork to the Securities & Exchange Commission seeking approval to enable around-the-clock stock trading for 23 hours a day during the week.
The move would shake up the long-standing 9:30 a.m. to 4 p.m. trading session that’s been in place since the 1980s, and market pros have mixed views on the prospect.
While some market veterans believe that around-the-clock trading would ultimately be beneficial for the market, others have raised concerns that the move could lead to an uneven playing field or gamify equities in a way that makes the market resemble crypto more closely.
Robinhood already has 24-hour markets for some popular stocks, and crypto markets famously trade 24/7. Some argue that the added trading hours make these assets—particularly crypto, which often sees big swings over the weekend—more volatile.
Here’s what the pros are saying.
The case for a 23-hour trading day
A selling point of Nasdaq’s around-the-clock trading initiative is that it could help democratize markets and make trading more accessible, particularly to traders outside the US.
José Torres, a senior economist at Interactive Brokers, said that many people who want to trade stocks find it difficult if they work a normal 9-5 job or live outside the US. Extending the trading day would address both issues.
“It gives greater access for more participation across demographics, across applications, across geographies,” Torres told Business Insider. “And I think it’s also good because it’ll offer real-time looks and real-time reactions on things that are happening overnight.”
The sentiment was echoed by Bob Lange, founder and chief options analyst of options trading and education platform Explosive Options. He said he sees the move as ultimately positive, as it will likely enable more people to start trading.
What are the cons?
Neither Torres nor Lange is concerned about more trading causing volatility in markets to increase. That said, Lange said he sees other potential problems developing if the Nasdaq introduces longer trading hours.
“I don’t believe that the smart money is going to really participate in this, in this after-hours trading market, per se,” he said. “The volume is just not going to be big enough to create a very fair market for individuals.”
Michael Ashley Schulman, CIO of Running Point Capital Advisors, said that in a market with around-the-clock trading, the advantage will likely lie with those who already have vast tools and resources, specifically hedge funds and quant firms.
“The advantage tilts toward players who can monitor, model, and execute in microseconds,” he said. “People don’t become irrelevant, but in the thinner overnight tape, the human can absolutely start lagging the machines, which means retail should expect more quirky price movements.”
Louis Navellier, chairman and CIO of Navellier & Associates, told Business Insider that while he understands why Nasdaq would want to encourage more trading, he thinks the plan carries outsize risks.
“After the normal market close at four o’clock, we run the risk of the sharks coming out, and we run the risk of short sellers and overseas markets trying to manipulate everything,” he said.
In his view, Nasdaq is racing to introduce around-the-clock trading to keep up with its competition. Indeed, Robinhood has introduced 24-hour trading for some popular stocks, and the New York Stock Exchange already filed for a 22-hour trading day in February.
Nasdaq did not respond to a request for comment.
Read the original article on Business Insider