Nasdaq Plans Nearly 23-Hour Trading Days Starting December Pending SEC Approval

Nasdaq is preparing to extend its trading hours to nearly 23 hours a day, five days a week, starting December 6, subject to approval from the U.S. Securities and Exchange Commission (SEC). Currently, Nasdaq trading runs from 9:30 a.m. to 4:00 p.m. Eastern Time, Monday through Friday. The exchange submitted its request to the SEC at the end of 2023, and after a public comment period, the SEC is expected to decide soon.

The new schedule will introduce additional trading sessions from 9:00 p.m. to 4:00 a.m. and from 4:00 a.m. to 9:30 a.m. ET, allowing for almost continuous trading. Regular trading hours will remain unchanged and continue to serve as the primary price-setting period. According to Nasdaq, this expansion aims to meet global demand for U.S. stock trading and attract capital more efficiently worldwide.

Lior Wider, founder of "Profit Multiplier," explained that the new overnight session will require special login and will not allow market or opening/closing orders. Unexecuted orders will be canceled automatically at 4:00 a.m., and price band protections will be in place. This change applies only to Nasdaq's main stock exchange; other Nasdaq group markets and options exchanges will maintain their current hours.

The extended trading week will begin Sunday at 9:00 p.m. ET and end Friday at 8:00 p.m. ET, with a daily one-hour break from 8:00 p.m. to 9:00 p.m. ET for data processing. On U.S. holidays falling Monday through Thursday, trading will start at 9:00 a.m. on the holiday evening and continue until 8:00 p.m. the following day.

This change will impact dual-listed stocks traded both on Nasdaq and the Tel Aviv Stock Exchange, such as Elbit Systems, Tower Semiconductor, and Nova. Currently, there is about one hour of overlap between the two markets; the new extended hours will increase this overlap, potentially affecting arbitrage opportunities. Nasdaq Texas and other affiliated exchanges will not change their trading hours.

Summary: Nasdaq plans to extend its trading hours to nearly 23 hours daily from December 6, pending SEC approval, to accommodate global investors and increase market access. This will introduce new overnight sessions while keeping regular hours intact and affect dual-listed stocks with the Tel Aviv Stock Exchange.