Analysis of Nasdaq's Push for 23-Hour Trading | US Stock Trading Hour Changes and Outlook

[US Stock Issue: Nasdaq Expansion to 23-Hour Trading]

The saying "Money never sleeps" is becoming a reality. Nasdaq is pushing to expand stock trading hours to 23 hours a day, effectively creating a 24-hour trading system. In this post, we analyze the background of these changes, the proposed schedule, and the Liquidity and Volatility risks that investors must be aware of.

Nasdaq 23-Hour Trading Expansion: US Stocks, The Sleepless Market is Coming

1. What is Changing? Nasdaq's 23-Hour Trading Blueprint

The core of the proposal Nasdaq plans to submit to the U.S. Securities and Exchange Commission (SEC) is to create a trading environment that is nearly 'open year-round.' The existing system, which operates 16 hours a day, is scheduled to be reorganized as follows:

• Daytime Session: 04:00 AM ~ 08:00 PM (Includes existing Pre-market + Regular Market + After-market)
• Break & Settlement: 08:00 PM ~ 09:00 PM (1-hour system maintenance)
• Overnight Session: 09:00 PM ~ 04:00 AM the next day (New segment)

If this plan is approved, you will be able to buy and sell stocks anytime from 9 PM Sunday to 8 PM Friday, excluding a one-hour daily break. This, along with moves by the New York Stock Exchange (NYSE) and Cboe Global Markets, demonstrates a massive shift in the global market.

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2. Why 24 Hours? Global Capital and Crypto Pressure

The reasons why Nasdaq is seeking these changes can be summarized in two main points.

First is the increase in global investment demand. Last year, foreign holdings of U.S. stocks reached approximately $17 trillion. Investors in Asia and Europe faced difficulties responding in real-time due to time differences, but extended trading hours will allow them to trade U.S. stocks comfortably during their local business hours (e.g., daytime in Korea).

Second is the competition with the Cryptocurrency market. To young investors accustomed to the crypto market that runs 24/7/365, a stock market where one has to 'wait for the opening bell' may lose its appeal. Nasdaq has chosen a strategy to keep the market doors open longer to avoid losing liquidity.

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3. Opportunities and Risks, The Dilemma of Liquidity and Volatility

While extending trading hours offers convenience to investors, it also accompanies structural risks.

Category	Positive Effects (Pros)	Negative Effects (Cons)
Market Response	Immediate trading response possible when global issues occur	Increased investment fatigue, such as sleep deprivation
Liquidity	Expanded opportunities for Entry/Exit without time constraints	Liquidity Fragmentation due to dispersed volume and widening of spreads
Volatility	Pre/Post-market news digestion may mitigate shock in the regular market	Risk of sharp fluctuations even with small volumes due to thin order books

In particular, Liquidity Fragmentation is the most concerning aspect. During late-night hours in New York (daytime in Asia) when everyone is asleep, participation by major institutions is low, leading to thin trading volumes. This means the bid-ask spread will widen, and stock prices could be distorted even with small trading volumes.

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4. Conclusion: A 24-Hour Market, An Awake Mind

Nasdaq's 23-hour trading, expected to be introduced in the second half of 2026, will provide powerful convenience for international investors, such as 'daytime trading' for those in Korea. An era is coming where one can trade global tech stocks without losing sleep at night.

However, even if the market no longer sleeps, the investor's reason must remain awake. The thin liquidity and high volatility of the overnight session can be significant risks for unprepared investors. It is time to further solidify your own investment principles in line with the changing market environment.

Key Summary:
Nasdaq's 23-hour trading dramatically improves investment accessibility, but one must approach it cautiously, being mindful of the lack of liquidity and the risk of increased volatility in the overnight session.

The content of this blog is for reference only for investment judgment, and investment decisions must be made under the individual's own judgment and responsibility. Under no circumstances can the information in this blog be used as legal evidence for investment results.