A seismic shift toward continuous stock trading is transforming US financial markets, yet major Wall Street institutions are approaching this revolution with significant reservations. The impending reality of near-24-hour weekday trading, accelerated by regulatory changes and exchange initiatives, faces substantial resistance from banking giants concerned about operational risks and questionable returns.
Nasdaq’s recent regulatory filing to enable 23-hour daily trading sessions represents the most concrete step toward nonstop markets, following NYSE Arca’s approved proposal for 22-hour trading. This structural transformation, targeted for full implementation by late 2026, responds to growing global investor demand for extended access to US markets but introduces complex challenges for market intermediaries.
Senior executives from JPMorgan, Bank of America, and Morgan Stanley express deep concerns regarding the multibillion-dollar infrastructure investments required. The necessity for enhanced risk management systems, overnight staffing, and technological upgrades presents substantial financial commitments without clear revenue projections. As one analyst noted, institutions perceive this primarily as an operational burden rather than a profit opportunity.
Critical risk factors include potentially inadequate overnight liquidity, which could exacerbate volatility and widen bid-ask spreads during extended sessions. Bank of America’s Sonali Theisen emphasized the imperative for robust investor protections before market-wide implementation, highlighting concerns about managing market-moving events outside traditional hours.
Proponents argue that extended hours will benefit international investors and improve market accessibility. Retail brokerage Robinhood anticipates full market participation within years, while Citadel Securities committed to meeting investor demand regardless of timing. However, skeptics question the immediate viability, with Citigroup’s Michael Masone projecting meaningful adoption might not materialize until 2027-2028.
The Depository Trust & Clearing Corporation’s parallel development of continuous clearing capabilities, combined with necessary updates to securities information processors, creates the technical foundation for this transformation. Industry projections suggest 1-10% of total equity volume could eventually migrate to extended sessions, potentially creating a multibillion-dollar segment—though not without overcoming substantial operational hurdles first.