The U.S. Securities and Exchange Commission will hold a public roundtable on Sept. 17 to discuss preparations for 24-hour trading in U.S. equity markets.
Summary
- SEC will host public September talks on overnight equity trading, resilience, infrastructure and investor safeguards.
- Nasdaq and Cboe are targeting longer weekday sessions, subject to regulatory approval and system readiness.
- Crypto’s 24/7 model is shaping demand, but tokenized stocks remain separate from exchange-listed shares.
According to the SEC’s official announcement, the meeting will take place at the agency’s headquarters in Washington, D.C., and will also stream online.
The regulator said the discussions will cover overnight trading, market operations, system resilience and investor protection. SEC Chair Paul Atkins said, “We are moving towards a new day – and night – in the U.S. equity markets.” He added that continuous trading could bring the U.S. market closer to other markets that already operate around the clock.
SEC reviews systems needed for longer trading sessions
U.S. stocks already trade beyond the regular session, which runs from 9:30 a.m. to 4 p.m. Eastern Time. Several exchanges and brokers offer premarket, after-hours or overnight access. However, the national equity market does not operate as one connected system for almost the entire weekday.
The SEC’s Division of Trading and Markets has said wider access will require changes across market infrastructure. In remarks on overnight equity trading, division director Jamie Selway identified market data, clearing, corporate actions, trade reporting and investor protection as areas that require coordination.
Longer trading hours also depend on consolidated market data systems. Those systems collect prices and trading information from exchanges before distributing them to brokers and investors. Any move toward 24-hour trading would require those services to operate for longer periods.
Clearing firms would also need to process transactions and manage risks outside the traditional market day. Meanwhile, brokers would have to monitor orders, maintain systems and support customers across longer operating periods.
Nasdaq, Cboe and LSE prepare extended trading hours
Nasdaq has been working with U.S. regulators on a plan to offer trading 24 hours a day, five days a week. The exchange aims to introduce the schedule during the second half of 2026, subject to regulatory approval and industry readiness.
According to Nasdaq’s extended-hours trading information, the company expects global investors to benefit from access to U.S. stocks during their local daytime hours. Nasdaq has said any expansion must maintain liquidity, transparency, stability and fair market access.
Cboe Global Markets is also preparing near-continuous weekday trading on its EDGX Equities Exchange. Under Cboe’s proposed schedule, trading would begin at 9 p.m. Eastern Time on Sunday and continue until 8 p.m. on Friday. A one-hour daily break would allow the exchange to complete operational work.
Cboe plans to make all National Market System stocks available during the extended sessions. However, the proposal still depends on SEC approval and preparations by brokers, clearing firms and market data providers.
The London Stock Exchange is pursuing a similar plan outside the U.S. In its LSE 24 announcement, the exchange said it plans to introduce a separate venue for near-continuous weekday trading.
The LSE expects to begin client testing before the end of 2026. It plans to launch exchange-traded products on the venue during the first half of 2027, subject to regulatory approval. The main London market will retain its current trading hours.
Overnight trading raises liquidity and resilience questions
Keeping markets open for longer periods involves more than extending exchange operating hours. Market makers must be willing to provide buy and sell prices during overnight sessions. Lower participation could reduce liquidity and create wider differences between the highest buying price and lowest selling price.
The SEC roundtable will also examine how exchanges and connected firms respond to outages and technical problems. Maintenance periods may become shorter as markets move closer to continuous weekday operations.
Investor protection will remain another part of the discussion. Prices can move more sharply when fewer traders are active. Investors may also receive different execution prices during overnight sessions than they would during regular market hours.
The SEC announcement does not establish a final rule or a common launch date for U.S. exchanges. Instead, the agency will collect comments from exchanges, brokers, investors, clearing firms and other market participants.
The SEC has opened a public comment file for the roundtable and will publish the agenda and speaker list before Sept. 17.
Crypto markets shape demand for round-the-clock trading
Cryptocurrency exchanges have operated continuously for years, allowing investors to trade during weekends, public holidays and overnight periods. That model has contributed to demand for similar access to traditional assets.
Global investors may also want to trade U.S. shares during local business hours rather than waiting for markets in New York to open. Exchanges see extended sessions as a way to attract those investors and compete with crypto platforms and alternative trading venues.
Crypto companies are also expanding into tokenized equities. As previously reported, Binance introduced bStocks with continuous trading for tokenized U.S. equities.
Similarly, Franklin Templeton and Ondo launched tokenized investment products that eligible users outside the U.S. can access through crypto wallets around the clock.
However, tokenized equities are not identical to shares traded directly on a national securities exchange. Their custody, ownership and redemption structures may differ. A crypto.news guide to tokenized stocks explains how blockchain-based equity products represent or track traditional shares.
The SEC’s September meeting will focus on regulated U.S. equity markets rather than approving tokenized stock products. Nasdaq, Cboe and other operators will continue preparing their systems while the regulator gathers public input on market access, resilience and investor safeguards.
