Around-the-Clock Trading: The New Frontier in Financial Markets

Round-the-clock trading is becoming the norm in financial markets, as highlighted by Tradeweb's CEO, Billy Hult. Nasdaq is seeking approval for 23-hour trading days. The shift promises faster settlements and broader access but raises concerns about liquidity constraints and increased operational costs for trading firms.

Tradeweb's CEO, Billy Hult, has declared that round-the-clock trading is set to become standard across financial markets. This evolution, detailed in Hult's letter, showcases how financial institutions are rapidly adopting 24/7 trading practices.

Nasdaq plans to extend stock trading to 23 hours a day, as major brokerages, including Robinhood and Charles Schwab, have already expanded trading hours. Hult predicts by 2026, tokenization will further expedite settlements and widen investor participation.

However, some skeptics point to potential issues such as liquidity constraints during off-peak hours and increased costs for trading firms. Despite these challenges, the demand for U.S. assets globally and the emergence of digital finance are driving the push for longer trading hours.

(With inputs from agencies.)