Last week, the SEC approved a proposed rule change by the National Securities Clearing Corporation (NSCC) that establishes an operating and clearing schedule for securities trading 24 hours a day, five days a week. As noted in the Commission’s order, NSCC (a subsidiary of DTCC) is a central counterparty and provider of clearance and settlement services for transactions in broker-to-broker equity, corporate and municipal bond, and unit investment trust transactions in the U.S. markets.

In light of the recent efforts of major U.S. exchanges to move toward 24-hour trading, the NSCC developed plans for facilitating extended trading hours. A recent report on the shift to 24-hour trading from DTCC and EY notes:

The recent announcements by the New York Stock Exchange (NYSE), Nasdaq, and CBOE to introduce near-24-hour equity trading mark a transformative change in U.S. equity market structure. The Depository Trust & Clearing Corporation (DTCC) and its equities clearing subsidiary, National Securities Clearing Corporation (NSCC), have taken concrete steps to support the industry’s evolution. In September 2024, NSCC extended its operating hours by opening its Universal Trade Capture (UTC) system for trading platforms to submit trades at 1:30 a.m. ET, approximately 2.5 hours earlier. Beginning June 28, 2026, NSCC plans to operate 24×5, from Sunday at 8:00 p.m. ET to Friday at 8:00 p.m. ET, subject to regulatory approval. This expansion enables NSCC to apply its central counterparty (CCP) guarantee immediately to overnight transactions, reducing counterparty risk and enhancing market resiliency.

While Alternative Trading Systems (ATS) have long offered extended hours access, national exchanges are now moving toward continuous trading, reshaping liquidity dynamics, global participation, risk management, and the operational and technological capabilities of member firms. By aligning NSCC’s UTC system with the extended hours of trading platforms, NSCC helps ensure seamless processing and mitigates counterparty exposure across time zones.

The report notes that implementation of the current 24×5 trading plans will occur in two phases, with the NSCC’s transition to a 24×5 schedule occurring on June 28, 2026, followed by the adoption of extended trading hours by national exchanges, which is expected between late 2026 into 2027.

The report also notes that it is expected that 1%-10% of total equity trading volume is projected to shift to overnight sessions by 2028, “creating new trading opportunities and enhancing global market access.”

– Dave Lynn