Despite the risks of liquidity and higher costs, the main bags of the world seek to carry out this initiative that allows night negotiations and the approval of the SEC is expected.
He Nasdaqhe second largest stock market operator in the United States, announced its intention to Allow the negotiation of actions 24 hours a dayfive days a week. According to such Cohen, president of Nasdaq, the implementation of this extended schedule is scheduled for the second half of 2026, provided you receive regulatory approval and there is coordination with the rest of the industry.
This initiative follows the steps of other bags that seek to expand their schedule. CBOE Global Markets Inc. recently announced similar plans, also subject to the authorization of regulators. For its part, The New York Stock Exchange requested last October operating for 22 hours on business days, A proposal that has already received initial approval by the Securities Market Commission (SEC), although you must still update your market data system to implement it.
Global interest and night negotiation challenges
The president of Nasdaq highlighted andl growing interest of retail investors in various time areas For US markets. However, he warned about the risks associated with extended negotiation, as higher volatility and transaction costs. Despite the increase in night trading in recent years, Liquidity during these hours remains significantly lower, which could affect the quality of transactions.
For this initiative to be viable, The update of the values information processor (SIP) is keywhich provides the best purchase and sale price of a real -time action. Nasdaq plans to work together with other actors in the sector to address these challenges and guarantee a safe transition to negotiation 24/5. The company will also submit a formal application before the SEC to initiate the regulatory approval process.
Wall Street
Wall Street: Different opinions about the extension of the negotiation schedule
Interest in expansion of stock time intensified during pandemic, When many investors began to demand continuous access to markets to immediately react to economic and corporate events. Some platforms such as Robinhood Markets Inc. and Interactive Brokers Group Inc. already offer their customers the possibility of operating 24 -hour US actions in alternative markets such as Blue Ocean.
Despite these innovations, The proposal to operate without interruptions divides opinions on Wall Street. While some defend the flexibility and accessibility offered to global investorsothers warn about low liquidity and possible imprecision in prices outside of traditional schedule.
So far, most of the stock market activity continues to concentrate on the opening and closing moments of the market. With the extension of the schedule, the doubt arises if the large institutional investors will modify their strategies and begin to operate outside these periods of greater volume.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
