In the context of accelerating global capital market connectivity, the U.S. stock trading system is at a critical turning point. Nasdaq has formally submitted an application to the U.S. Securities and Exchange Commission to extend trading hours, aiming to gradually increase the trading duration of stocks and exchange-traded products from the current 16 hours per day to nearly 23 hours, with a potential path towards 24-hour trading in the future. This move is seen as an important step in the structural reform of the U.S. stock market.

Extended Trading Hours on the Agenda: Moving Toward "Near 24-Hour Trading"

According to disclosed information, Nasdaq plans to significantly extend the current trading hours to cover more active trading times in the Asian and European time zones. Currently, U.S. stock trading is mainly concentrated during U.S. Eastern Time business hours, which poses a significant time zone limitation for overseas investors. If the new proposal is approved, U.S. stock trading will better align with the continuous global trading rhythm, significantly enhancing market accessibility and liquidity.

Nasdaq has noted that international investor demand for U.S. stocks has been increasing in recent years, and extending trading hours will help global capital make trading decisions during local market hours, reducing information asymmetry and trading friction caused by time zone differences.

Wall Street Systems Preparing, Regulatory Review Is a Key Variable

As the possibility of extended trading hours increases, relevant Wall Street infrastructure has started preparing for longer trading cycles, including improvements in trading system stability, market-making mechanisms, clearing and settlement arrangements, and risk management capabilities. The industry generally believes that extending trading hours is not just about "lengthening the clock," but also presents higher demands on the market’s operational mechanisms.

However, the proposal's implementation still requires regulatory approval. The U.S. Securities and Exchange Commission will primarily evaluate the impact of 24-hour or extended trading hours on market fairness, price discovery efficiency, and investor protection, particularly the volatility risks that may arise during lower liquidity periods.

Global Trading Trends Changing the Competitive Landscape of U.S. Stocks

From a broader perspective, this move by Nasdaq is also seen as a strategic response to competition from global exchanges. With some Asian and European markets already offering longer trading hours, if the U.S. stock market maintains relatively limited trading hours, it could gradually weaken its attractiveness to international capital.

Analysts believe that if U.S. stocks successfully enter the near-24-hour trading era, the global capital allocation rhythm, cross-market arbitrage methods, and investor trading habits will likely change, further increasing the internationalization of the U.S. stock market.Nasdaq's push to extend trading hours is not only a technical and institutional adjustment but could also mark an important turning point in the development of the U.S. stock market. Its ultimate direction and actual impact will still depend on regulatory results and market feedback.