(Finance) – NasdaqAmerican multinational of financial services that manages the homonymous list of the same name, intends to allow Trading 24 hours a day on the Nasdaq Stock Market for five days a week. This was announced by the president of the company, Tal Cohen, in a post on LinkedIn. Pending the regulatory approval and alignment with the sector of critical infrastructure suppliers, the company plans to introduce the novelty in the second half of 2026.
“The global growth of the demand of investors for US actions means that we are in another crucial moment for our markets: expand the access of investors, expand the opportunities to create wealth and redefine the functioning of the markets,” said Cohen, who however recognized that careful and deliberate planning is needed, because “because”liquidity, transparency and integrity remain the lifeblood of dynamic markets and any structural change must respect these principles “.
Cohen explained that the total foreign participations of US shares reached 17 trillions of dollars in June 2024, with an increase of 97% compared to 2019. In APAC regioninvestors “are more and more by addressing their attention to the US marketsattracted by the depth of opportunities, the solid regulatory framework and from access to high growth sectors such as technology and health care, “he underlined.
Moreover, with the growing financial literacy and the Proliferation of digital trading platformsthese investors have become more sophisticated using a wide range of strategies, such as investment in options and ETFs. For example, over the past five years have been launched over 56 products negotiated in the stock exchange that trace the Nasdaq-100 index and 98% of these products was introduced outside the United States.
The president of Nasdaq has recognized that although trading activities beyond traditional times have increased in recent years through off-stock exchange offices, as alternative trading system (ATS) and broker-dealer platforms, “liquidity remains significantly lower during these hours”. Therefore, the trading and investment environment during night trading hours includes one greater volatility and transaction costs.
Also, he pointed out that the broadcasters remain cautious On the idea of trading 24 hours a day. A recent Nasdaq survey on the companies listed on its price list indicated that about half of the interviewees has reserves on the expansion of trading times in the stock exchange, in particular as regards liquidity and corporate action.