SEC Approves Nasdaq Proposal To Expand Trading Hours

On April 10, 2026, and consistent with its previous approval of similar proposals by other national exchanges (24X and NYSE Arca), the SEC approved the Nasdaq Stock Market (Nasdaq) proposal to extend its trading hours for NMS stocks and exchange-traded products (ETPs) from 16 hours a day, five days a week, to 23 hours a day, five days a week. The extended hours are meant to address a growing interest in trading during overnight hours, particularly among investors located in other time zones, and to compete with trading platforms that provide access to markets for digital assets on a 24/7 basis.

Currently, Nasdaq has three daily weekday trading sessions: (1) a Pre-Market Hours session from 4:00 AM to 9:30 AM ET; (2) a Regular Market Hours session from 9:30 AM to 4:00 PM ET; and (3) a Post-Market Hours session from 4:00 PM to 8:00 PM ET. During the current Pre-Market and Post-Market sessions, Nasdaq offers more limited trading functionality than it does during the Regular Market Hours session, and trading during that period is subject to different regulation.¹ In addition, Nasdaq members must disclose to customers that extended hours trading involves material risks.

Going forward, Nasdaq will conduct trading 23 hours per day, five days per week in two trading sessions: (1) the separate Pre-Market Hours, Regular Market Hours, and Post-Market Hours sessions will be combined into a Day Session (commencing at 4:00 AM ET and ending at 8:00 PM ET); and (2) a new Night Session, commencing at 9:00 PM ET and ending at 4:00 AM ET the next calendar day. Between 8:00 PM and 9:00 PM ET on each weekday, Nasdaq will pause trading to conduct maintenance, testing, and to process those corporate actions, such as mergers, stock splits, and dividends, that will become effective the following trading day. The pause will also allow for market participants to process and clear trades before proceeding to a new trading day. The trading week will commence with a Night Session on Sunday nights at 9:00 PM ET, and will end at the conclusion of the Day Session on Friday. On a day when Nasdaq is closed for business, the closure will be effective as of 8:00 PM ET on the calendar day prior to the closure date, and the market will reopen at 9:00 PM ET on the closure date, unless the closure date is a Friday, in which case the market will reopen on Sunday evening at 9:00 PM ET. On a day when Nasdaq closes the market early, it will resume trading at 9:00 PM ET on the same calendar day, unless again, the early closure date is a Friday, in which case the trading will resume on Sunday evening at 9:00 PM ET.

During the Day Session, all existing requirements, procedures, behaviors, and processes, including those governing the opening and closing crosses, halts, routing, order types, attributes, times-in-force, order entry protocols, connectivity, market data, etc., all will continue in their current form, with minor conforming changes.² The Night Session will be similar to the existing Post-Market Hours and Pre-Market Hours trading sessions, in that it will feature limited functionality (to reflect that only certain rules of Regulation NMS apply) and reduced trading activity. In addition, only limit orders (which would be subject to limit order protection to prevent orders at prices outside of pre-set standard limits) would be permitted during the Night Session, and unpriced orders would not be permitted. However, the Night Session will differ from Post-Market Hours and Pre-Market Hours trading in several respects, including: (1) that a separate Night Session port will be required; (2) specified trading halt rules will apply;³ and (3) additional risk disclosures will be required. The proposal also includes various conforming, clarifying, and non-substantive changes.

The following aspects of Nasdaq’s trading system and procedures will not change when trading equities and ETPs on a 23/5 basis commences (as described below): (1) listing rules; (2) membership rules; (3) rules of conduct; (4) market maker obligations; (5) ranking, display, priority, and decrementation rules; (6) disciplinary rules and enforcement; (7) opening and closing crosses; and (8) clearly erroneous protections.

Nasdaq will not commence operation of the Night Session prior to a filing of a proposed rule change to confirm that it is able to comply with its obligations during the Night Session and that the Equity Data Plans (effective national market system plans that govern the collection, consolidation, processing, and dissemination of equity market data for NMS stocks and oversee securities information processors) are prepared to collect, consolidate, process, and disseminate quotation and transaction information during the Night Session.

Nasdaq will address any impact of the new rules on its schedule of credits and fees, and its incentive programs, in a subsequent rule filing.

© Arnold & Porter Kaye Scholer LLP 2026 All Rights Reserved. This Advisory is intended to be a general summary of the law and does not constitute legal advice. You should consult with counsel to determine applicable legal requirements in a specific fact situation.