US equity exchanges, including Nasdaq, NYSE Arca, 24X National Exchange, and Cboe EDGX, are set to launch an overnight trading session from 9 p.m. to 4 a.m. New York time starting Dec. 6. The move aims to attract foreign investors and compete with crypto and prediction markets. Overnight trading currently accounts for about 1% of equity volume but has surged 358% year-over-year.
While proponents see reduced time-zone barriers, critics warn of lower liquidity, wider bid-ask spreads, and increased operational risk. Institutional investors remain hesitant, with many prioritizing market quality over extended hours. Infrastructure providers like Depository Trust & Clearing Corp. and Securities Information Processors are adapting to support 24x5 operations.
Retail investors and alternative trading systems are expected to lead adoption, though buy-side participation remains limited.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing