U.S. equity markets are edging closer to round-the-clock trading, but enthusiasm across Wall Street is mixed, with several major banks taking a cautious stance toward the shift.
While exchanges are moving ahead with plans for nearly continuous weekday trading as early as late next year, some of the largest U.S. banks remain hesitant to fully commit. On Monday, Nasdaq submitted filings to regulators seeking approval to extend trading hours to 23 hours a day during the workweek, underscoring how quickly the initiative is advancing.
The drive toward near nonstop trading reflects growing global demand for access to U.S. markets, particularly from international investors. Regulators have responded by updating rules and approving proposals from major exchanges to lengthen trading hours, marking the first time a leading global bourse would operate on such an extended basis.
Concerns over risk and cost
Even as exchanges, clearinghouses, and market infrastructure providers work through the technical requirements, senior executives at large U.S. banks are questioning whether the benefits justify the risks and investment. According to interviews with executives from firms including JPMorgan, Bank of America, and Morgan Stanley—who spoke on condition of anonymity—the transition could require tens of billions of dollars in spending, with no clear guarantee of near-term returns.
“It’s being viewed as more of a nuisance than something that will drive revenue upside for these firms,” said Patrick Moley, a senior research analyst at Piper Sandler. “Banks and brokers will need to roll out additional technology and support capabilities. And at the moment, it’s difficult to know how quickly they will see a return on that investment.”
Banks and broker-dealers are weighing the operational and financial implications, particularly around managing risk during major market-moving events that could occur overnight.
“We need to make sure that we have the right protections for risk management in place to handle events … before we really unleash this on the market,” said Sonali Theisen, global head of FICC E-Trading & Markets Strategic Investments at Bank of America, speaking at a recent panel hosted by the U.S. Securities and Exchange Commission.
Benefits for overseas investors, questions at home
Supporters of extended trading hours argue that nonstop access would benefit both retail and institutional investors—especially those outside the U.S.—by allowing faster reactions to news that breaks when U.S. markets are closed. However, market structure specialists and bank executives caution that thin liquidity during overnight sessions could lead to wider spreads, increased volatility, and less reliable pricing.
“We’re not going to change all of our systems and all of our end-of-day processes, extend everything, and hire people to work overnight,” said Brian Suth, head of electronic trading at Evercore ISI, adding that he does not currently see strong institutional demand for such trading.
BlackRock executives echoed similar concerns in a white paper this year, noting that overnight trading tends to be less liquid than regular market hours, often resulting in higher trading costs and greater price swings.
“I don’t know that many firms are insistent upon being there Day 1. But I think in time, your hand may be forced if there is significant liquidity to interact with,” said Michael Masone, head of North America market structure at Citi, who added that the firm has begun preparing for around-the-clock trading.
Exchanges and infrastructure move ahead
Despite reservations from parts of Wall Street, major exchanges are actively laying the groundwork. Nasdaq’s latest filing follows the New York Stock Exchange’s announcement last year that it would offer 22-hour weekday trading on its Arca equities platform—a plan that received SEC approval earlier this year.
A successful launch of extended-hours trading in late 2026 will depend heavily on upgrades to core market infrastructure, including the securities information processor that consolidates and displays official stock quotes. The Depository Trust and Clearing Corporation (DTCC), which clears most U.S. equity trades, is planning to introduce nonstop clearing services by late 2026.
In a joint white paper, DTCC and Ernst & Young estimated that between 1% and 10% of total U.S. equity trading volume could take place during extended hours by 2028.
Long-term momentum building
Momentum toward continuous trading has picked up this year as the SEC, under Chairman Paul Atkins, has sought to reduce regulations it views as limiting the growth of U.S. financial markets.
“I don’t think it’s a stretch to say in a couple of years we’ll be trading around the clock, and all the market participants are already coming,” said Steve Quirk, chief brokerage officer at Robinhood.
Market makers are also preparing to respond if demand materializes. Stephen Berger, global head of government and regulatory policy at Citadel Securities, said the firm would be ready to support investors.
“If there’s demand from investors … to trade outside of regular trading hours, it’s our job to be there to provide the best execution quality and the best execution experience for investors,” said Berger.
Some executives believe that while adoption may be slow initially, overnight trading could evolve into a multi-billion-dollar opportunity over time.
“Will this take off in 2026? Probably not. Could it take off in 2027? Yes. Will it be a sizable market by 2028? I think so,” said Masone at Citi.