Despite growing enthusiasm for around-the-clock (ATC) trading among retail investors and trading venues, U.S. institutional equity traders remain largely unconvinced that 24-hour markets will benefit their operations.
A new study by Crisil Coalition Greenwich shows that only 14% of buy-side equity traders are enthusiastic about 24-hour trading, while 60% say they have no interest at all.
“It’s not that they are uninterested—they are largely opposed to the idea,” Jesse Forster, Senior Analyst at Crisil Coalition Greenwich and author of 24-Hour Equities: Balancing Innovation and Practicality report said.
Forster said buy-side traders face more immediate challenges than extending trading hours. “It’s not a primary concern among the buy-side. They have more pressing issues to solve, such as operations and settlement challenges, incompatible workflow technology, and ensuring proper coverage from their brokers.”
“No one is asking for an extended trading day,” he told Traders Magazine.
“Buy-side traders are concerned with execution quality, operational risk, and market impact, Forster said. “They don’t think the potential reward—retail liquidity—is worth the risks it brings, or the effects such as lower liquidity and higher volatility it could have on the existing core session,” he explained.
“A longer day doesn’t necessarily draw out more liquidity, but it certainly distributes it over a wider duration,” he added.
Institutional traders surveyed highlighted concerns about market quality in overnight sessions. Nearly two-thirds (63%) worry that extended hours would mirror current pre- and post-market sessions—sporadic, inconsistent, and prone to wider spreads. About 62% fear ATC trading could dilute liquidity during core hours, according to the findings.
“Liquidity tends to concentrate around auctions and key events,” Forster said. “Extending trading spreads participation more thinly. That’s a real concern for traders who need consistent depth and size to execute efficiently.”
Fatigue and operational risk are also concerns, according to the findings. Nearly 29% of respondents cited burnout and fatigue as potential issues from longer trading sessions. Traders point to the current extended hours as a “live experiment” in 24-hour trading that has shown mixed results, describing participation as “sporadic at best.”
When asked whether ATC trading could help manage risk, Forster acknowledged potential benefits but warned of hidden costs. “It may present liquidity opportunities and price discovery to manage risk, but that will probably come at higher implicit costs in terms of market impact. Institutions need size alongside price discovery—or they’re just leaking information,” he said.
He added that while larger firms may have the resources to manage 24-hour operations, smaller players could struggle. “Like with many other regulatory changes, some firms will be better resourced to not only absorb the costs but build the operational expertise to trade around the clock. Some of the smaller players may be more adversely impacted than others,” he said.
Even among traders open to the idea, expectations are cautious. ATC trading is generally seen as useful for specific situations rather than a wholesale transformation of trading practices. “From the buy-side perspective, it doesn’t address a real execution need—it’s creating unnecessary complexity,” Forster said. “If overnight sessions remain thin, increased access may not translate to improved outcomes. Diverting flow from core hours without clear benefits introduces operational risk and complexity.”
The Crisil Coalition Greenwich report concludes that institutional adoption of 24-hour trading will depend on tangible improvements in liquidity, resilience, and execution outcomes.
“For overnight sessions, more access doesn’t necessarily translate to better outcomes. Extending trading without clear, demonstrable benefits risks adding complexity, raising costs, and fragmenting liquidity,” Forster said.
“Institutions are focused on what matters most—getting the job done efficiently, safely, and effectively,” he concluded.
