The Impact of Nasdaq's Proposed 23-Hour Trading on Market Dynamics

On December 20, 2025, Nasdaq made headlines with its proposal to extend trading hours to 23 hours a day, seeking approval from the U.S. Securities and Exchange Commission (SEC). This ambitious move aims to enhance market accessibility for retail investors, particularly those who have traditional work schedules or reside in different time zones. While proponents argue that this change could democratize access to the stock market, critics express concerns about increased volatility and the potential for institutional investors to dominate the landscape.

Key Points of Discussion

• Market Accessibility: One of the most significant benefits of the proposed trading hours is the increased accessibility for a broader range of investors. José Torres, a senior economist at Interactive Brokers, emphasizes that many individuals struggle to trade during standard hours. He notes, "This change could significantly benefit those who find it difficult to trade during standard hours."

• Volatility Concerns: While some experts believe that longer trading hours could encourage greater market participation, others are wary of the potential for increased volatility. Michael Ashley Schulman, Chief Investment Officer (CIO) at Running Point Capital Advisors, raises a red flag about the advantages favoring those with more resources, such as hedge funds and quantitative trading firms. "The advantages would likely favor those with more resources," he explains.

• Historical Context: The current trading hours have been in place since the 1980s, and this proposed change reflects evolving investor behavior and the demand for more flexible trading options. As technology continues to advance, the need for markets to adapt becomes increasingly clear.

Expert Opinions

• Support for the Proposal: Advocates of extended trading hours argue that this change could enhance market liquidity and democratize access to trading. Many market professionals see it as a necessary evolution aligning Nasdaq with global trading practices. As Nasdaq's Senior Vice President Chuck Mack states, "Extending trading hours meets this demand while preserving the transparency and resiliency that define U.S. markets."

• Skepticism About Fairness: Critics caution that the shift may create an uneven playing field, where retail investors are at a disadvantage compared to institutional players who possess advanced trading tools and algorithms. Louis Navellier, chairman and CIO of Navellier & Associates, voices concern about the risks associated with the shift, prompting the question of market fairness.

Conclusion

The potential introduction of a 23-hour trading regime by Nasdaq could significantly reshape market dynamics, enhancing participation while also introducing risks associated with volatility and fairness. As the proposal moves through regulatory channels, both retail and institutional investors should monitor these developments closely to understand their implications for future trading practices and market engagement.

In a landscape increasingly defined by rapid technological advancement and shifting investor behaviors, the push for more flexible trading hours underscores the growing need for equity in market access—an essential consideration as Nasdaq seeks to redefine the future of stock trading.

For further insights, you can explore more details on Nasdaq's initiatives through Business Insider and Hargreaves Lansdown.

As discussions around Nasdaq's proposal unfold, the financial community remains divided, weighing the benefits of enhanced access against the realities of market dynamics that could favor larger entities. The coming months will be pivotal in determining how this potential change will shape the future of trading in the U.S. stock market.