Nasdaq’s 5×23 Trading Test: Extended U.S. Hours to Pave Way for Tokenization

Nasdaq has filed with the SEC to move U.S. equity trading from the current 5×16 schedule to a 5×23 model: trading from Sunday 21:00 ET to Friday 20:00 ET with a daily one-hour maintenance window. Official rationale highlights service for Asia and Europe, but the proposal is widely seen as a coordinated step toward tokenized, near-continuous markets and eventual 24/7 trading. Key enablers cited include DTCC’s push toward tokenized real-world assets, the switch to T+1 settlement in 2024, and Nasdaq’s backend upgrades (including Calypso integration) for automated margin and collateral management. The initiative follows similar moves from NYSE and Cboe and depends on major infrastructure changes: a continuous securities information processor and DTCC completing 24/7 clearing by late 2026. Expected effects for traders and intermediaries include higher operational costs, strain on brokers and clearinghouses, fragmented and thinner liquidity during night sessions, faster transmission of global shocks with less overnight digestion, and potential changes to price discovery and execution models. Early data supporting demand: NYSE non-regular-hours trading reached about 20 billion shares and $62 billion in Q2 2025 (~11.5% of U.S. volume). Traders should monitor SEC decisions, DTCC production timelines, broker infrastructure readiness, and initial liquidity/volatility patterns in the night sessions. The move may act as a stress test aligning market hours with on-chain settlement rhythms and could accelerate demand for fully tokenized, 7×24 tradable equities.