Nasdaq moves to make trading nearly 24 hours. Why some on Wall Street say that’s a bad idea

## Nasdaq’s 24/5 Trading Plan: A Gamble or a Game Changer?

Nasdaq is proposing a significant change to stock trading hours, aiming for nearly 24-hour, five-day-a-week trading. This move has sparked debate on Wall Street, with some experts questioning its necessity and potential impact. Here’s a breakdown:

• The Proposal: Nasdaq plans to submit a proposal to the SEC to extend trading hours to 23 hours a day, five days a week, with a launch planned for the second half of 2026 if approved. This would include a “day session” and a “night session”.
• Current Hours: Currently, Nasdaq operates with pre-market, regular, and after-hours sessions, totaling 16 hours of trading on weekdays.
• Criticism: Critics, including Wells Fargo and market strategists, worry about increased volatility, thin liquidity, and a “gamified” trading environment. They believe extended hours could exacerbate existing market structure problems.
• Concerns for Companies: Some experts raise concerns about listed companies’ ability to release news and hold meetings without impacting markets.
• Retail Influence: The move follows the trend of retail brokers like Robinhood offering extended trading hours, catering to individual investors’ demand for around-the-clock trading.
• NYSE’s Plans: The New York Stock Exchange is also pursuing extended trading hours.
• Liquidity Concerns: Some argue that most trading volume already concentrates around the open and close, making extended hours counterproductive.
• Staffing Implications: Questions arise about whether firms will need to staff trading desks around the clock to participate.
• The Need for Breaks: Critics emphasize the importance of trading pauses for markets to digest information and participants to reset.

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