Nasdaq to Launch 23-Hour Global Trading Schedule on December 6

The Nasdaq stock exchange is set to revolutionize global trading with its "Global Trading Hours" plan, scheduled to launch on December 6. This initiative will extend trading to 23 hours a day, five days a week, a move approved by the U.S. Securities and Exchange Commission (SEC) in April. The extended schedule aims to make U.S. stock markets more accessible to investors across different time zones.

Under the new system, trading will only pause for one hour, from 8 p.m. to 9 p.m. Eastern Time (8 a.m. to 9 a.m. Taiwan time), for system maintenance. This contrasts with the current structure, which includes pre-market, regular, and after-hours trading sessions. The new "daytime" and "nighttime" sessions will integrate these, with trades completed during the night session from 9 p.m. to 4 a.m. Eastern Time considered part of the next trading day.

Chuck Mack, senior vice president at Nasdaq North American Markets, stated that the reform seeks to broaden opportunities for global investors. With foreign investors holding an estimated $17 trillion in U.S. stocks by mid-2024, the extended hours could significantly influence global capital flows. Several Japanese online brokerages, including SBI Securities and Rakuten Securities, have announced they will offer U.S. stock trading during Japanese daytime hours from December 6.

Traditional Japanese brokerages, however, express caution due to increased costs associated with system upgrades and staffing adjustments. The Japanese government also notes a surge in retail investor trading of foreign stocks, primarily driven by day traders. A continued boom in U.S. stock trading by Japanese retail investors could potentially lead to Japanese companies listing in the U.S., impacting Japan's domestic capital market and its "asset management nation" policy.

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This reform is not just about extending trading hours; it's about expanding opportunities for global investors to participate in the U.S. stock market, allowing investors in different time zones to trade at convenient times.