Adapting to near-continuous trading hours may unlock new opportunities, prompt a focus on operational excellence, and spur investment in technology to meet related challenges.
Exchanges and market infrastructure providers are proposing to lengthen their operating hours to support extended trading hours, enabling investors to respond to global events in real time.
Why it matters: As participation in U.S. securities surges, international investors are increasingly seeking access to U.S. markets during their own business hours. Exchanges and market infrastructure providers are examining how best to meet this market demand.
Yes, but: Shifting to extended trading hours brings operational complexity, potential liquidity fragmentation, and new risks related to investor protection and regulatory oversight. These factors demand a coordinated response from market participants, and clear guidance from regulators.
What’s next: Organizations may consider reviewing their trading strategies, operational processes, technology infrastructure, client demand, and risk management frameworks to thrive in this evolving environment.
The bottom line: Firms across the market are already taking steps to understand if the demand for extended trading hours will render a profitable outcome. Leveraging advanced technologies, particularly AI, may be important for navigating these changes and maintaining a competitive edge.
Go deeper: Read the full report on the strategic and operational impacts of extended trading hours.
— by Roy Ben-Hur, managing director, Deloitte & Touche LLP
