TLDR:
- NYSE plans to extend trading hours on Arca exchange to 22 hours daily (1:30 AM to 11:30 PM ET)
- Change subject to SEC regulatory approval, targeting 2025 launch
- All U.S.-listed stocks, ETFs, and closed-end funds will be available for trading
- Move responds to growing demand for round-the-clock trading and global market access
- NYSE Arca currently trades about $27.7bn daily in ETFs and $21.8bn in corporate stocks
The New York Stock Exchange announced plans to dramatically extend trading hours on its all-electronic Arca exchange to 22 hours per day, marking a major shift in U.S. market operations. The new schedule would run from 1:30 AM to 11:30 PM ET on weekdays, subject to regulatory approval.
The proposed changes target a 2025 launch date and will require approval from the Securities and Exchange Commission (SEC). Under the new system, traders will have access to all U.S.-listed stocks, ETFs, and closed-end funds during the extended hours.
Currently, NYSE Arca operates from 4 AM to 8 PM ET, while traditional NYSE trading occurs between 9:30 AM and 4 PM ET. The extension would add several hours on both ends of the current trading day, creating new opportunities for global investors across different time zones.
The move comes as interest in round-the-clock trading has increased among retail investors. Platforms like Robinhood have already introduced “24/5 trading” services, operating from Sunday evening through Friday evening. The cryptocurrency market’s 24/7 trading schedule has also influenced expectations for traditional market accessibility.
NYSE Arca serves as a primary platform for ETF trading and handles a substantial volume of daily transactions. Current data shows the exchange processes approximately $27.7 billion in daily ETF trades and $21.8 billion in corporate stock transactions.
Kevin Tyrrell, head of markets at the NYSE, emphasized the global reach of this initiative. “The NYSE’s initiative to extend U.S. equity trading to 22 hours a day, 5 days a week underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world,” he stated.
The extended hours will operate through the NYSE Arca electronic exchange, known for its sophisticated trading infrastructure. All trades during these extended hours will clear through the Depository Trust and Clearing Corporation, maintaining consistent settlement procedures.
The expansion represents a response to changing market dynamics, particularly the surge in retail trading following the Covid-19 pandemic. The increased popularity of cryptocurrency trading has also influenced expectations for market availability.
The plan involves coordination with U.S. securities information processors, including the Consolidated Tape Association. This integration ensures that night-time trading activity will be officially recorded and could influence market sentiment during regular trading hours.
The move aligns with existing extended-hours trading in other financial markets. U.S. Treasuries, currencies, and stock index futures already trade outside normal exchange hours, creating precedent for expanded trading windows.
ICE, NYSE’s parent company, will need to file updated rules with the SEC detailing the operational framework for the extended trading hours. This regulatory process will address various aspects of the extended trading session, including risk management and market surveillance.
The extension of trading hours follows NYSE’s earlier efforts to gauge market interest in expanded trading. Earlier this year, the exchange conducted surveys among market participants about the potential for around-the-clock stock trading.
Some retail brokers currently offer overnight trading through dark pool venues, which match night-time U.S. trades with daytime trading in Asian markets. NYSE’s move would provide a more standardized, exchange-based alternative for extended-hours trading.
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