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US Exchanges to Extend Trading Hours, Raising the Stakes for Financial Firms

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US Exchanges to Extend Trading Hours, Raising the Stakes for Financial Firms

U.S. stock exchanges are preparing to extend trading to 23 hours a day, five days a week, creating new opportunities for investors while requiring financial firms to adapt their technology, risk controls and overnight operations.

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The Securities and Exchange Commission (SEC) has conditionally approved expanded trading hours for five exchanges: 24X, Cboe EDGX, MEMX, Nasdaq and NYSE Arca. The overnight session is scheduled to run from 8 p.m. to 4 a.m. Eastern time Sunday through Thursday, with a one-hour technical maintenance break from 8 p.m. to 9 p.m. Monday through Thursday.

The expansion, planned for Dec. 6, would extend exchange-based equity trading into overnight hours and reshape how broker-dealers, market infrastructure providers and other financial services companies manage activity beyond the traditional trading day.

In an analysis published by Mondaq, lawyers from WilmerHale outlined the steps firms should take to prepare for the expanded schedule, highlighting customer disclosures, trading controls, corporate actions and coordination across market infrastructure.

Longer trading hours require market data, trade reporting and clearing systems to operate on compatible schedules. The consolidated securities information processors, known as SIPs, collect and distribute quotes and transaction information across U.S. equity markets and are scheduled to extend their hours alongside the new sessions.

S. equity trades, has also extended its operating hours. FINRA’s trade reporting facilities are scheduled to expand their hours on Dec. 6, allowing eligible over-the-counter transactions to be reported during the overnight period.


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