Nasdaq Plans Near-24-Hour Trading Amid Wall Street Concerns Over Liquidity and Costs – Wednesday, December 17, 2025

Nasdaq is advancing plans to implement nearly 24-hour trading, aiming to attract global investors and compete with cryptocurrency exchanges. However, skepticism regarding liquidity and operational costs is surfacing among Wall Street stakeholders.

Who should care: CFOs, fintech product leaders, payments executives, risk & compliance teams, and financial services technology decision-makers.

What happened?

Nasdaq is preparing to extend its trading hours to nearly 24 hours a day, a strategic initiative intended to align with the continuous trading models popularized by cryptocurrency exchanges and to better serve international investors across time zones. This move forms part of Nasdaq’s broader effort to strengthen its position in the increasingly global and competitive financial markets. By offering extended hours, Nasdaq aims to capture trading volume outside traditional market sessions, potentially increasing liquidity and market participation from regions previously underserved during standard hours. Despite these ambitions, the proposal has sparked skepticism among Wall Street participants. Concerns center on whether sufficient liquidity will exist during off-peak hours to support meaningful trading activity, as thin liquidity can exacerbate price volatility and widen spreads. Additionally, the operational costs of maintaining infrastructure and staffing for nearly round-the-clock trading are expected to be substantial. Market participants are also wary of the regulatory complexities involved in monitoring and enforcing compliance during extended hours, which could introduce new risks. These factors raise questions about the overall feasibility and benefits of the initiative. If implemented, the shift will likely necessitate significant adjustments in trading strategies, risk management frameworks, and compliance protocols to navigate the altered market environment effectively.

Why now?

Nasdaq’s push for extended trading hours responds to the growing trend toward globalized, always-on markets, a phenomenon largely driven by the rise of cryptocurrency exchanges that operate 24/7. Over the past 18 months, investor behavior has shifted noticeably, with more traders demanding the flexibility to engage in markets beyond traditional hours. This evolution is fueled by technological advancements and the increasing interconnectedness of global financial markets. As traditional exchanges face mounting pressure to remain competitive, they must balance the imperative to innovate with the need to maintain market stability and regulatory compliance in an evolving landscape.

So what?

Nasdaq’s move toward nearly 24-hour trading carries significant implications for the financial services industry. Strategically, it signals a shift toward a more continuous, global trading environment that could enhance market accessibility for international investors and potentially increase trading volumes. Operationally, firms will need to carefully evaluate the impact on liquidity management and the increased costs associated with supporting extended trading hours, including technology upgrades and staffing. Moreover, the potential for heightened market volatility during off-peak periods could influence trading strategies and risk assessments, requiring firms to adapt their risk management approaches accordingly.

What this means for you:

• For CFOs: Assess the financial impact of extended trading hours on liquidity and operational expenses to inform budgeting and resource allocation.
• For fintech product leaders: Explore opportunities to develop tools and platforms that facilitate 24-hour trading and enhance risk management capabilities.
• For risk & compliance teams: Prepare for intensified regulatory scrutiny and ensure robust compliance frameworks are in place to manage extended trading hours.

Quick Hits

• Impact / Risk: Extended trading hours may increase market volatility and require firms to adjust liquidity management strategies accordingly.
• Operational Implication: Firms could face higher operational costs and must upgrade technological infrastructure to support near-24-hour trading.
• Action This Week: Review current trading strategies and risk management policies; evaluate technological readiness for extended trading hours.