Nasdaq Plans 23-Hour Trading Day Starting December, Impacting Israeli Market

Nasdaq is preparing to extend its trading hours to 23 hours a day, five days a week, beginning December 6, pending approval from the U.S. Securities and Exchange Commission (SEC). The new schedule will add trading sessions from 9:00 PM to 4:00 AM and from 4:00 AM to 9:30 AM Eastern Time, in addition to the current regular hours of 9:30 AM to 4:00 PM. This means trading will run from 4:00 AM to 3:00 AM Israeli time, effectively allowing nearly continuous access to U.S. stocks.

The exchange aims to meet global demand for American stock trading by offering almost continuous trading hours, which Nasdaq believes will attract capital more efficiently worldwide and provide broader access to investors. Lior Wider, founder of the "Mekhpil Revach" information service, explained that the new overnight session will supplement existing early and late trading hours, while the regular trading hours will remain the primary price-setting period.

A senior market analyst noted that while the market will be open for 23 hours, liquidity during nighttime hours is expected to be lower, making prices more sensitive to individual orders. The regular trading hours will continue to anchor true price discovery. The new schedule also includes a daily one-hour break from 8:00 PM to 9:00 PM Eastern Time for data processing and transition to the next trading day. Nasdaq's affiliated exchanges, such as Nasdaq Texas, will maintain their current hours.

For Israeli investors, the extended hours mean increased opportunities to trade U.S. stocks during Israeli morning hours, which is expected to benefit both the Israeli and Asian markets by enhancing global trading accessibility. Dual-listed stocks, such as Elbit Systems, Tower Semiconductor, and Nova, traded both on Nasdaq and the Tel Aviv Stock Exchange (TASE), will see increased overlapping trading hours, potentially reducing arbitrage gaps and improving price reliability. This change is viewed positively for dual-listed shares, as it allows simultaneous trading and better price alignment between markets.

Overall, the Nasdaq expansion is seen as a significant development for global investors, including Israelis, offering more flexible trading times while maintaining the central role of regular trading hours for price stability.