Nasdaq Proposes "Night Session" Trading

The Nasdaq Stock Market LLC ("Nasdaq") proposed amending its rules to provide for the trading of equity securities and exchange-traded products ("ETPs") on a 23-hour basis, five days per week.

In its proposed rulemaking, Nasdaq explained that the amendment would establish a new "Night Session" operating from 9:00 p.m. to 4:00 a.m. ET, distinct from the existing pre-market, regular, and post-market sessions. The Exchange stated that expanding its hours would align Nasdaq with emerging investor interest in trading outside of traditional U.S. market hours—particularly among investors located in Asia—and allow the Exchange to compete with Alternative Trading Systems and 24/7 digital asset platforms.

Nasdaq said the proposal was consistent with the Exchange Act because: (i) it incorporates established regulatory protections, including real-time surveillance and "Clearly Erroneous" transaction rules, into the overnight session; (ii) the launch is conditional upon the Securities Information Processor (SIP) validating its ability to disseminate quotation and transaction data during the Night Session; (iii) it mitigates systemic risk by instituting a one-hour trading pause from 8:00 p.m. to 9:00 p.m. ET for maintenance and corporate action processing; and (iv) it mandates enhanced disclosures to warn customers of the specific risks associated with liquidity and volatility during extended hours.

Comments on the proposal must be submitted on or before February 3, 2026.