Several large U.S. banks are reportedly reluctant to embrace the move toward round-the-clock stock trading, even as exchanges prepare for its broad rollout. Nasdaq recently filed paperwork to extend trading to 23 hours a day on weekdays. This push comes amid increasing global investor demand for greater access to U.S. capital markets. While exchanges and clearinghouses are charting the technical path, some large U.S. dealers are raising concerns.
Executives from banks including JPMorgan, Bank of America, and Morgan Stanley have anonymously voiced concerns about the risks and costs associated with 24/7 trading. Patrick Moley, a senior research analyst at Piper Sandler, noted that banks and brokers will need to invest in additional technology and support capabilities, but it’s unclear how quickly they will see a return on that investment. Sonali Theisen, global head of FICC E-Trading & Markets Strategic Investments at Bank of America, emphasized the need for robust risk management protections.
Proponents argue that 24/7 trading will benefit international investors by allowing them to react more quickly to news breaking outside U.S. market hours. However, some experts warn of thinner overnight liquidity, which could affect pricing precision. The U.S. Depository Trust and Clearing Corp. (DTCC), the primary clearing hub for U.S. stock markets, plans to roll out nonstop stock clearing by late 2026. The DTCC facilitates the clearance and settlement of securities transactions. Robinhood, a financial services company, offers commission-free investing.
Despite hesitation from some quarters, major players are preparing. The New York Stock Exchange is offering extended hours trading on its Arca equities venue, and Citi has begun preparations for round-the-clock trading. Stephen Berger, global head of government and regulatory policy at Citadel Securities, affirmed the firm’s commitment to meeting investor demand for extended hours trading. Some executives suggest overnight trading could eventually become a multi-billion-dollar business for Wall Street.
