Nasdaq Expands Trading Hours to 23 Hours a Day, Five Days a Week
AI-generated summary for informational purposes only. Not legal advice. See the original source for the authoritative text.
The Nasdaq Stock Market has extended its trading hours to 23 hours a day, five days a week. This change enables trading of NMS stocks and exchange-traded products around the clock except for a one-hour pause each day and a weekend break. This move caters to global investors, especially those whose trading hours do not align with U.S. market hours, and aims to compete with alternative trading systems offering after-hours trading.
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Key Changes
- Nasdaq trading hours extended to 23 hours a day, five days a week
- Introduction of a new Night Session from 9:00 p.m. to 4:00 a.m. ET
- Dedicated ports required for trading during the Night Session
Obligations
What this law requires
Market participants must use dedicated ports designated for trading during the Night Session to connect to the distinct instance of the Trading System during that period.
Market participants must use ports specifically designated for the Night Session to connect to the Exchange's trading system during Night Session hours.
Members must disclose to customers the risks associated with trading during the Night Session, including lower liquidity and increased volatility.
Market participants must inform customers of the material risks involved with trading during extended hours, as trading volume tends to be lower and can lead to increased volatility.
Brokers participating in Night Session trading must comply with the Limit Order Protection rule, which prevents certain limit orders at prices outside of pre-set limits from being accepted.