The New York Stock Exchange (NYSE) plans to extend stock market trading to 22 hours a day, amid growing interest in all-day trading offered by the likes of Robinhood Markets, Interactive Brokers and cryptocurrency exchanges such as Coinbase.
The NYSE, owned by Intercontinental Exchange Group aims to keep its NYSE Arca electronic exchange open from 1:30 a.m. ET to 11:30 p.m. ET on weekends. All U.S.-listed stocks, ETFs and closed-end funds will be available to trade all 22 hours. Currently, NYSE and NYSE Arca trade at 4 a.m. ET to 8 p.m. PT.
The plan, announced Friday, needs regulator approval. The NYSE will file its new trading rules with the Securities and Exchange Commission. Back in April, the New York Stock Exchange polled market participants about non-stop trading.
America has more than more than 60% of the world's stock market capitalization, up sharply since 2010. That increased dominance spurs greater desire for overseas trading of U.S.-listed stocks at different times of the day.
The NYSE move reflects "growing demand for (U.S.)-listed securities around the world, said Kevin Tyrrell, NYSE's head of markets, in a statement.
But it's also likely a reaction to extended trading moves at various brokerages and exchanges.
Robinhood, Interactive Brokers Go 24/5
Robinhood lets traders sell many popular stock and ETFs "24/5," which trading from 8 p.m. ET on Sunday to 8 p.m. ET Friday. Interactive Brokers offers more than 10,000 stocks and ETFs for trading essentially nonstop over that span.
Overnight trading volume for most stocks is usually minimal until 7 a.m. or even 8 a.m. ET, barring earnings or other big news. Even the most-popular stocks may not trade much at, say, 5 a.m. ET. There's the risk of sudden stock price spikes and dives in a low-liquidity environment.
Tesla Robotaxi Event
But there are times when longer extended hours would be helpful. The Oct. 10 Tesla robotaxi event, like many Tesla events, started well after NYSE extended trading finished.
So investors couldn't trade or see the Tesla stock market reaction via NYSE Arca until the next morning. But on Robinhood and Interactive Brokers, investors could track TSLA stock rising during the event and then tumbling as it ended.
S&P 500, Nasdaq 100 and Dow Jones futures are already open overnight, opening at 6 p.m. ET on Sunday. Treasuries, commodities, currencies also have essentially round-the-clock offerings from Sunday evening through Friday evening.
Cryptocurrency exchanges such as Coinbase are open 24 hours, seven days a week.
NYSE-parent Intercontinental Exchange reports before the open on Thursday, Oct. 31. Robinhood and Coinbase will report late Wednesday.
Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.
