Nasdaq is planning to submit paperwork with the U.S. Securities and Exchange Commission on Monday in an application for 23-hour weekday trading, according to a Reuters report late yesterday.
This pains me because it’s unhealthy for traders, and potentially the market.
There is something to be said for the ability to stop and think at a quiet time in markets. In FX, 24 hour trading is a necessity but the weekend still provide a valuable respite.
In equities, there is no need for more than 3 hours a day of trading and we’re already at 16 in the Nasdaq. The lines will increasingly blur between days and the only one this helps is algos. People need time to digest information while algos can grab headlines and move markets while most traders are sleeping.
According to the report, the Nasdaq plans to operate two trading sessions, with the day session starting
at 4 a.m ET. and ending at 8 p.m., followed by a one-hour break for
maintenance, testing, and clearing of trades. The night session will
kick off at 9 p.m. and end at 4 a.m. the following calendar day. There will still be the usual bells at 9:30 am and 4 pm ET but that’s increasingly a formality.
