TheCorporateCounsel.net

Here’s a big development that was revealed in a blog last month from Nasdaq president Tal Cohen:

We are excited to share that Nasdaq has begun engaging with regulators, market participants and other key stakeholders, with a view of enabling 24-hour trading five days a week on the Nasdaq Stock Market.

Our timeline is pending regulatory approval and alignment with critical industry infrastructure providers, which we anticipate being in the second half of 2026.

Honestly, my first thought in reading this was. . . not excitement. With “fake news” causing a multi-trillion-dollar market swing earlier this week, it seems like we already have our hands full during regular trading hours.

I’m just a lowly securities lawyer, so I wouldn’t expect my opinion to matter to anyone. But apparently Investor Relations folks also have some concerns, as discussed in detail in this LinkedIn newsletter. This Fast Company article explains in layman’s terms:

Companies, especially the ones found on the tech-heavy Nasdaq, like Apple, Amazon, Alphabet, Nvidia, and more, like to control when investors receive news about them, as much as they can, anyway. The reason for this is that news, especially when it’s first disseminated, can make a stock’s price swing wildly in one direction or another.

This is why many companies report their earnings before or after regular market hours. Retail investors typically don’t trade in those hours, which helps mitigate any large-scale fear- or greed-based selling or buying when news hits.

If stocks are traded 24/5, companies lose this buffer—which could lead to increased trading volatility. If this change happens, every CEO or CFO will have to be extra careful what they say during earnings calls, as any statement—correctly interpreted or not—could lead to instant trading volatility.

And for the media covering Nasdaq companies—and the markets in general—well, they will no longer be able to call it a night after 4 p.m. If the Nasdaq is trading 24/5, that means U.S. financial news is now happening 24/5, and investors are going to want real-time analysis and updates.

I understand the change would bring benefits, but I’m exhausted just thinking about it.

Nasdaq is actually not the first exchange to pursue 24-hour trading. The SEC approved the “24X exchange” last fall – which offers trading 23 hours a day, five days a week. That approval drew criticism – but Commissioners Peirce and Crenshaw responded with this statement defending their decision. So, unfortunately for me, it seems like they’re on board with the concept.

– Liz Dunshee