Analysis of U.S. Exchanges' 24/7 Trading Plans and Market Reaction

This analysis is based on the Reuters report [1] published on December 16, 2025, which details U.S. exchange operators—Nasdaq, Intercontinental Exchange (ICE, NYSE parent), and Cboe Global Markets—advancing plans for 24/5 (five days a week, nonstop) stock trading. Nasdaq filed paperwork with the U.S. Securities and Exchange Commission (SEC) on December 15, targeting a second-half 2026 launch [2]. Major Wall Street banks have expressed reluctance, citing concerns about lower liquidity, heightened volatility, and uncertain returns on investment (ROI) for operational changes [1].

Immediate market reactions on December 16 reflected investor caution:

• Exchange operators (directly tied to the transition) closed lower: Nasdaq Inc. (NDAQ: -0.69%), ICE (-1.10%), CBOE Global Markets (CBOE: -2.32%) [0]
• The broader Financial Services sector declined 1.18%, placing it among the worst-performing sectors (trailing Technology and Consumer Defensive) [0]
• Major banks showed mixed results: JPMorgan Chase (JPM: +0.47%), Goldman Sachs (GS: +0.18%), Morgan Stanley (MS: -0.35%) [0]

Volume trends revealed varying investor interest: NDAQ and ICE traded below their 30-day averages, while CBOE traded above its average, suggesting heightened scrutiny of CBOE amid the news [0]. These reactions likely stem from investor focus on short-term implementation costs (e.g., technology upgrades, 24/7 staffing) over potential long-term benefits from global investor access [0].

1. Short-term cost concerns overshadow long-term potential
   : The negative stock performance of exchange operators indicates investors are prioritizing immediate implementation costs over the expected long-term revenue gains from expanded global participation [0].
2. Stakeholder divergence
   : Exchange operators face direct pressure from the transition, while banks’ mixed results reflect varying perceptions of the transition’s impact on their operations and ROI [1].
3. CBOE’s elevated volume
   : CBOE’s above-average trading volume suggests the market is more focused on its response to 24/7 trading, possibly due to its role in options and volatility products [0].

• Liquidity and volatility
  : Off-peak hours may see wider bid-ask spreads and reduced trading volumes, increasing volatility for investors [1].
• Operational costs
  : Exchanges and banks face significant costs for 24/7 staffing, technology upgrades, and cybersecurity [1].
• Regulatory uncertainty
  : The SEC’s response to Nasdaq’s filing and potential new rules for extended trading hours add compliance burdens [1].
• Competitive fragmentation
  : Early movers may face disadvantages if liquidity remains fragmented across exchanges [1].

• Global investor access
  : Exchanges could benefit from increased participation by international investors outside U.S. market hours [1].
• Revenue growth
  : Extended trading hours and higher global participation may drive new revenue streams for exchanges [1].
• Competitive edge
  : Banks that adapt early to 24/7 trading may gain market share in the evolving trading environment [1].

• Event timeline
  : Nasdaq filed with the SEC on December 15, targeting 24/5 trading launch in the second half of 2026 [2].
• Market reactions
  : Exchange operators’ stocks declined, the Financial Services sector underperformed, and major banks showed mixed results [0].
• Stakeholder concerns
  : Banks are reluctant due to liquidity, volatility, and ROI uncertainties; investors are cautious about short-term implementation costs [1].
• Critical uncertainties
  : Regulatory approval timeline, liquidity solutions for off-peak hours, exact operational costs, and global investor adoption [1].