Around-the-clock equity trading may be technologically possible, but without deep changes to clearing, settlement and payment systems, it could create new risks across the financial ecosystem, according to new research from the World Federation of Exchanges (WFE).
The paper, Extending Exchange Trading Hours, authored by Dr Kaitao Lin, Senior Financial Economist at the WFE, comes as U.S. exchanges move closer to 24/5 trading models. The study examines trading hours across 60 exchanges globally and traces how market schedules have evolved.
Driven in part by growing retail participation and demand from investors operating across time zones, major U.S. exchanges, including NYSE Arca, Nasdaq and Cboe Global Markets, are re-evaluating traditional trading windows. Europe, by contrast, has taken a more cautious stance, weighing liquidity concentration and work-life balance considerations.
“Cboe’s infrastructure and operations are well-positioned to support extended trading hours given it already supports early U.S. equity trading hours on two of its exchanges and operates near 24×5 trading across its derivatives and global FX markets,” Oliver Sung, SVP Head of North American Equities at Cboe Global Markets, told Traders Magazine.
“Since filing in December 2025 to extend our trading hours to 23/5, our teams have been working to ensure a seamless transition once critical infrastructure providers, including the SIPs and DTCC, are ready,” added Chuck Mack, SVP – North American Markets, Nasdaq.
Meanwhile, the WFE argues that extending access is only one part of the equation.
According to Nandini Sukumar, CEO of the WFE, “while around-the-clock trading is technologically feasible and may enhance market accessibility and flexibility, its effective implementation and sustainability depend on deep coordination across trading, clearing, settlement, and regulatory systems.”
“It will rely on the coordination of financial market infrastructure to overcome the challenges to liquidity timing, counterparty exposure, and cash flow alignment whilst maintaining robust mechanisms for price discovery and investor protection,” she said.
The National Securities Clearing Corporation (NSCC) has announced plans to move to 24/5 clearing (from Sunday 20:00 EST to Friday 20:00 EST), subject to regulatory approval. The move would allow its central counterparty guarantee to apply to overnight trades, reducing counterparty risk and bringing clearing closer in line with extended trading activity.
The Securities Information Processors (SIPs) have also proposed expanded operating hours to ensure consolidated data can be disseminated during these longer sessions.
The WFE paper notes that extended trading cannot function unless multiple conditions are met simultaneously: clearing must be available during extended hours, market data must be disseminated in real time (including off-exchange activity), and listing exchanges must update their systems to handle corporate actions and symbol changes on an expanded schedule.
The report adds that moving from 24/5 to true 24/7 trading would represent a much larger structural shift.
The report notes that while modern trading platforms execute orders in milliseconds, clearing and settlement systems still operate on T+1 or T+2 cycles within defined weekday business hours. Central securities depositories (CSDs) and CCPs do not currently run through weekends.
According to the WFE research, the mismatch becomes critical if trades occur when payment systems are closed. The paper warns that margin calls issued outside banking hours may not be met until funding channels reopen, and if central bank payment rails, such as Fedwire in the U.S. or TARGET2 in Europe, are unavailable, cash settlement cannot occur in real time.
The WFE notes that some CCPs have introduced prefunded margin buffers or out-of-hours banking arrangements to reduce risk. But a scalable, system-wide approach may require broader changes, potentially including extended payment system hours or new weekend settlement mechanisms.
Dr Pedro Gurrola-Perez, Head of Research at WFE, said: “Initiatives in the U.S. are paving the way for 24/5 equity trading, and the industry is working closely with SIFMA and regulators to support the alignment of extended trading hours and required changes to post-trade processes. A potential move to 24/7 trading in any jurisdiction would require more significant transformations across much of the post-trade ecosystem.”
The WFE also highlights that extended trading changes the risk profile of market infrastructure. The paper notes that many clearing and settlement systems were designed around end-of-day batch processes and staffed daytime operations. A 24/5 or 24/7 model would require near-zero downtime, live patching capabilities, automated monitoring, continuous vulnerability scanning and robust incident response planning.
The report concludes that exchanges pursuing extended hours will need to balance investor demand for greater access with the realities of post-trade alignment and liquidity depth.
“It’s equally critical that the industry works together to advance the entire ecosystem – market data, clearing and settlement, and investor education – and takes a deliberate and prudent approach to the initiative,” Sung commented.
“Cboe is focused on working with our clients and partners to ensure near 24×5 trading is introduced responsibly, with investors equipped with the proper data and access,” he added.
“We’re closely working with issuers, investors, and the broader industry to make sure investor protection and market quality are maintained during this process,” Nasdaq’s Mack concluded.
