Nasdaq Upgrades to 5x23 Model to Expand Trading Hours

MetaverseLandlord · 2026-02-02T06:04:17+00:00

Nasdaq plans to propose a 5x23 trading model to the SEC, extending trading hours from 16 to 23 per day. This change aims to enhance liquidity and accommodate global investors, while addressing potential challenges in risk management and technology infrastructure.

MetaverseLandlord

2026-02-02 06:04:17

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According to BlockBeats, Nasdaq is planning to submit a proposal to the U.S. Securities and Exchange Commission (SEC) to implement a significantly expanded stock trading service. The new 5x23 model represents a breakthrough in market structure, extending trading hours from the current 16 hours to 23 hours per day, including exchange-traded products (ETPs).

Strategic Move: From the Old Model to 5x23

Currently, Nasdaq operates five days a week for 16 hours. The new plan will significantly expand this timeframe by deploying the 5x23 model, allowing continuous trading for 23 hours each day throughout the five-day week. This expansion reflects a global trend toward 24-hour markets, competing with other international exchanges that have introduced more flexible trading hours.

Two Trading Sessions Structure in 5x23

The 5x23 model is designed with two main trading sessions to optimize liquidity and investor participation.

Day Session runs from 4:00 a.m. Eastern Time to 8:00 p.m. During this period, the regular trading session maintains traditional hours from 9:30 a.m. to 4:00 p.m., surrounded by pre-market trading (opening at 4:00 a.m.) and after-hours trading (closing at 8:00 p.m.).

Night Session takes place from 9:00 p.m. to 4:00 a.m. the next day. Trades executed between 9:00 p.m. and midnight will be recorded in the next day’s trading calendar, creating a link between the two sessions. The 5x23 trading week begins at 9:00 p.m. on Sunday and ends at 8:00 p.m. on Friday after the day session concludes.

Significance and Potential Impact

Transitioning to 5x23 could bring numerous benefits to investors and trading firms. Extending an additional 7 hours of trading each day allows international traders and investors in different time zones to participate more deeply. It could also improve responsiveness to global events occurring outside standard trading hours. However, moving to 5x23 also presents new challenges related to risk management and technological infrastructure to support longer trading activities.

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