The New York Stock Exchange (NYSE, Financial) has announced a plan to extend trading hours for its fully electronic exchange, NYSE Arca, to 22 hours per day, pending regulatory approval. This change will apply to all U.S.-listed stocks, ETFs, and closed-end funds and will help meet the growing global demand for U.S. securities. The extended hours are considered part of pre-market and post-market trading.
Currently, NYSE's trading hours are from 4:00 AM to 8:00 PM Eastern Time, with regular trading occurring from 9:30 AM to 4:00 PM. The new schedule will start at 1:30 AM ET and end at 11:30 PM ET. The clearing of trades will continue to be handled by the Depository Trust & Clearing Corporation (DTCC), which has also extended its operating hours recently.
Kevin Tyrrell, head of NYSE Markets, highlighted that this move underscores the strength of the U.S. capital markets and addresses the increasing need for round-the-clock trading. The extension will provide more flexibility for traders in different time zones and may require financial companies to adjust their strategies for early morning and late evening trading.
The extension of trading hours is a response to the ability to trade other assets like U.S. Treasury bonds, currencies, stock index futures, and cryptocurrencies outside regular hours, putting pressure on NYSE to expand its trading schedule.
This change could also affect how earnings releases are handled, as many companies announce quarterly results after regular trading hours, which could now lead to more significant price fluctuations during the extended trading period, offering new opportunities for traders.
Historically, the NYSE has undergone several changes in trading hours since its inception in 1792, adapting to technological advancements and market demands. The latest planned extension for NYSE Arca aims to cater to the evolving needs of market participants seeking more continuous trading opportunities.
