By Andrew Welsch

More financial services companies are offering investors 24-hour trading. Now Nasdaq, best known for its tech-heavy stock exchange, would like to join the all-night party.

The New York-based company will seek regulatory approval to enable 24-hour trading five days a week on the Nasdaq Stock Market, President of Nasdaq Tal Cohen announced Thursday morning. The company is working with regulators, market participants and other key stakeholders, he said. Nasdaq anticipates being ready to extend trading in the second half of 2026, depending on regulatory approval.

"Now, as the industry considers the growing interest in 24-hour trading, we stand at yet another pivotal moment -- one that has the potential to broaden investor access, expand wealth-building opportunities, and redefine how markets function," he wrote in a LinkedIn post.

Although overnight trading volumes are much lower than daytime volumes, brokerage firms see opportunities in serving night owls as well as international customers who want better access to U.S. markets.

To offer overnight trading, firms serving retail investors rely on broker-dealer platforms and alternative trading systems to match buyers and sellers. Nasdaq, with its vast stock exchange, recognizable brand, and oversight may be able to win over brokerage firms' business by offering better liquidity and price discovery.

"At Nasdaq, we believe our longstanding history of technology and infrastructure investments will ensure that we will bring a world-class 24-hour trading experience, with stability, capacity, and resiliency for market participants and investors," Cohen writes.

Shares of Nasdaq are down 1.5% this year compared with a 2.4% decline for the S&P 500, which has been beaten down on economic and trade worries. Though the company is best known for its stock exchange, it also provides data and analytics services to customers. As of Dec. 31, a total of 4,075 companies listed securities on The Nasdaq Stock Market, with 1,383 listings on The Nasdaq Global Select Market, 1,366 on The Nasdaq Global Market and 1,326 on The Nasdaq Capital Market, according to the company's annual report.

The company's move also dovetails with the growing ranks of retail investors who have embraced investing in stocks over the past decade because of falling commissions and easier access thanks to investing apps on smartphones. Whereas investors once had to call a stockbroker, today every investor is a swipe away from their first stock trade.

"The rise of retail participation has greatly transformed the global investment landscape," Cohen writes. "Wealth accumulation across major regional economies reduces barriers to accessing markets, and an ever-increasing appetite to share in global prosperity is driving investors to engage with U.S. markets more than ever before."

Recently, Charles Schwab vastly expanded its 24-hour trading service, citing domestic and overseas customer demand, particularly from young investors. "That younger generation is interested in real-time, when I want it and need it," James Kostulias, head of trading services at Schwab, told Barron's .

Brokerage firms Robinhood Markets and Interactive Brokers also offer customers 24-hour trading. For Nasdaq, the move toward overnight trading may feel inevitable.

"The question is not whether we can build a market that operates 24/5, but how we do so in a way that strengthens investor confidence in U.S. capital markets today," Cohen wrote.

Write to Andrew Welsch at andrew.welsch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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March 07, 2025 08:01 ET (13:01 GMT)

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