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Why 24/7 Trading is a Bad Idea


The New York Stock Exchange and Nasdaq have applied for regulatory permission to extend their trading hours to 22 and 24 hours daily, respectively. Nasdaq expects to implement round-the-clock trading from the second half of 2026. The London Stock Exchange is considering similar extensions, according...

Several retail brokers already facilitate overnight trading through alternative platforms and "dark pools" -- off-exchange venues that operate during non-standard hours. In fact, this is partly why institutional investors like dark pools: their lighter reporting requirements, compared with exchanges, allow big orders to be executed without alerting the wider market beforehand, which would move the price. The witching hours are currently when all manner of dull, but vital, post-trade processes take place, from settlement and valuation to the reconciliation of mistakes.

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