Business · Markets · 4 hrs ago
Nasdaq plans 23-hour trading, with limited expected impact on South Korea
Nasdaq plans to trade 23 hours a day, five days a week from Dec.
6, adding overnight trading hours.
In South Korea, trading would run from 11 a.m.
until 10 a.m.
the next day, with a one-hour break for system work.
The change is aimed partly at attracting Asian investors, whose demand for overnight US trading has grown.
Other US venues, including NYSE Arca and Cboe’s EDGX, are also pursuing longer hours.
Analysts disagree on whether more money will move to US stocks: some expect easier access to encourage investment, while others say company value and market conditions matter more than trading hours.
The effect on South Korea’s market may be limited, though longer US trading could increase volatility or influence how local shares are priced.
South Korean exchanges are also pursuing longer trading hours, and some brokers are discussing ways to transfer unfilled orders between trading venues automatically.
Nasdaq plans to begin trading 23 hours a day, five days a week, from December 6, according to Yonhap.
The expanded schedule is intended in part to attract global investors, particularly in Asia, where demand for overnight trading is significant.
Analysts say easier access could increase investment in US stocks, but most expect the effect on South Korea’s market to be limited.
They say investor flows will depend more on company value, market conditions and expected returns than on trading hours alone.
Some analysts say longer US trading could improve price discovery and affect South Korean stocks, while also potentially adding volatility.
- Who
- Nasdaq plans the longer trading schedule; South Korean investors and markets may be affected.
- What
- Nasdaq plans to trade 23 hours a day, five days a week. Analysts expect any effect on South Korea’s market to be limited overall.
- When
- From December 6, according to the article.
- Where
- Nasdaq in the United States; the schedule corresponds to 11 a.m. to 10 a.m. the next day in South Korea, with a one-hour break.
- Why
- To respond to demand for overnight trading, including from Asian investors, and attract global investment.
Investors expecting increased US investment
Analysts expecting limited impact on South Korea
Investment flows
Investors expecting increased US investment
Longer hours could make US stocks more accessible and increase the scale of investment in them.
Analysts expecting limited impact on South Korea
Trading hours alone are unlikely to cause a large shift; company value, market conditions and investor sentiment matter more.
South Korean market effects
Investors expecting increased US investment
More US trading could influence domestic price formation and, during weak market conditions, raise concerns about outflows or volatility.
Analysts expecting limited impact on South Korea
South Korean trading volumes and market flows are likely to be driven more by market trends and expected returns than by trading hours.
Yonhap published its report on Nasdaq’s planned extended trading hours and possible effects on South Korea.
Nasdaq is scheduled to move to a 23-hour-a-day, five-day trading system, according to the article.
Nasdaq is scheduled to close for system maintenance during this one-hour interval.
- Nasdaq schedule
- 23 hours a day, five days a week
- Start date
- December 6
- South Korea time
- 11 a.m. to 10 a.m. the next day
- Daily break
- 10 a.m. to 11 a.m. Korea time
- Other exchanges
- NYSE Arca and Cboe’s EDGX are also pursuing 23-hour trading
What people are saying
One of the biggest reasons Nasdaq and the New York Stock Exchange are moving to a 23-hour trading system is that they have confirmed substantial demand for overnight trading in Asian countries.
The investment amount is ultimately a matter of whether companies are worth investing in, not whether trading hours are insufficient.
The convenience of being able to trade Nasdaq while awake will increase, but there will not be a very large impact on domestic market flows.
News being immediately reflected in stock prices and improved access to information are advantages, but more frequent trading could increase volatility when markets are unstable.