24-hour trading is coming to the wider market, but who will it impact and how ready is the industry? This is a retail-driven, US equities-focused trend. Demand increased during the pandemic, has been steady from Asian investors, and is influenced by cryptocurrency markets (already 24/7). Regulated exchanges are not currently offering this yet, but many have announced plans to do so as early as 2026, but need support from regulatory and other market infrastructures. Meanwhile, overnight trading remains off exchange.
Today overnight trading activity is lower than extended hours trading, with activity highest at 9pm ET and 3am ET, coinciding with several Asian market open and close. That said, overnight markets can have low liquidity with most days attracting trading in less than 1,500 ticker symbols, and less than 1% of overall market in terms of volume and notional.
To assist clients in understanding the technology and operational impacts of recent moves to expand availability of overnight trading of US equity securities, we have prepared this Flash Report. Information has been drawn from Celent proprietary data as well as relevant industry publications and events, including those from regulatory and industry authorities and market infrastructures, such as the US Securities Exchange Commission (SEC) and the Depository Trust & Clearing Corporation (DTCC) as well as from industry trade associations, such as the Securities Industry and Financial Markets Association (SIFMA) and World Federation of Exchanges (WEF). This information has been analyzed to identify areas related to technology systems and solutions supporting data and post-trade processes in this space.
This report provides an overview of drivers, current state of play, key players, market readiness and workflow impact and highlights technology and operational considerations and impacts for market participants and for the solution providers serving them.
