Wall Street Braces for Near-24-Hour Stock Trading Amid Bank Skepticism

Key Moments

Wall Street Split on Nearly Nonstop Trading

NEW YORK, Dec 16 (Reuters) – U.S. equity markets are moving toward near-continuous weekday trading. However, some of Wall Street’s largest banks are cautious and skeptical.

Major banks hesitate to invest heavily in round-the-clock stock trading, even as exchanges push plans for nearly nonstop sessions next year. On Monday, Nasdaq filed with regulators to extend weekday trading to 23 hours per day.

Investor demand for broader access to U.S. markets has fueled this shift. Consequently, regulators have adopted new rules and approved exchange proposals to lengthen trading hours.

Costs, Complexity, and Risk Concerns

Exchanges, clearinghouses, and infrastructure firms are laying the technical foundation for extended hours. Meanwhile, major U.S. dealers question the risk-reward balance. Executives at JPMorgan, Bank of America, and Morgan Stanley cited tens of billions in required spending with no guaranteed returns.

“Banks see this as more of a nuisance than a revenue driver,” said Patrick Moley, senior research analyst at Piper Sandler. “Additional technology and support capabilities are needed, yet the payoff remains uncertain.”

Firms are analyzing the costs, benefits, and risks of near-24-hour trading. Senior leaders worry about handling market-moving events outside normal hours.

“We must ensure risk management protections are ready before fully launching,” said Sonali Theisen, Bank of America’s global head of FICC E-Trading & Markets Strategic Investments.

Overnight Access vs. Liquidity

Proponents argue that extended hours allow both retail and institutional investors, especially those abroad, to react quickly to news outside U.S. hours. Nevertheless, market experts warn that overnight liquidity is likely thin. Thin markets could impair price discovery and raise questions about actual demand.

“We won’t overhaul all systems or hire overnight staff without clear demand,” said Brian Suth, head of electronic trading at Evercore ISI. “Institutional interest currently seems limited.”

BlackRock’s white paper notes that overnight sessions are less liquid than regular hours. This can mean wider spreads, higher volatility, and increased transaction costs.

“Not all firms need to join immediately,” said Michael Masone, Citi’s head of North America market structure. “However, significant liquidity could eventually compel participation.”

Exchanges Prepare for Longer Hours

Nasdaq and NYSE are positioning for extended sessions. Nasdaq’s move follows NYSE Arca’s plan for 22-hour trading, approved by the SEC. The DTCC plans nonstop stock clearing by late 2026.

DTCC and Ernst & Young estimate that 1%-10% of total U.S. equity volume could occur during extended hours by 2028.

Regulatory Shift and Long-Term Outlook

Momentum for near-24-hour trading is growing. The SEC, under Chairman Paul Atkins, has focused on rolling back constraints that previously limited market growth.

“In a couple of years, trading around the clock is plausible,” said Steve Quirk, Robinhood’s chief brokerage officer. “Market participants are preparing.”

Citadel Securities’ Stephen Berger added, “If investors demand trading outside regular hours, we aim to provide top execution quality.”

Some executives expect substantial long-term revenue, even if adoption is gradual.

“Will this take off in 2026? Probably not. In 2027? Possibly. By 2028, it could become sizable,” said Masone at Citi.