Nasdaq's Extended Trading Plan Sparks Fierce Debate Among Wall Street Experts

Market Expansion or Gambling Paradise?

Nasdaq’s ambitious proposal to expand U.S. equity trading from the current 16 hours to 23 hours daily has triggered sharp criticism from major financial institutions. Wells Fargo analysts delivered a scathing assessment, questioning whether this extension transforms stock trading into something resembling New York session forex markets’ accessibility across different time zones—essentially elongating speculation windows and potentially attracting retail traders who would otherwise be excluded from regular market hours.

The Proposal Breakdown

The exchange giant filed a preliminary notice with the SEC Monday, outlining plans for a dual-session trading structure. Under this framework, stocks would trade during a “day session” spanning 4 a.m. to 8 p.m. EST, followed by a “night session” from 9 p.m. through 4 a.m. the following morning. This would dramatically shift market dynamics compared to traditional hours (9:30 a.m. to 4 p.m.).

Interestingly, the mechanics won’t apply equally to all order types. Market orders—those executed immediately at prevailing prices—would remain restricted to traditional hours. However, limit orders, which trigger only when specific price thresholds are met, would operate throughout both sessions.

Wells Fargo’s Counterargument

The banking giant rejected Nasdaq’s core rationale. Wells Fargo claimed that extending hours misunderstands market behavior: trading volume naturally peaks at market open and close periods. The analysts noted that rather than spreading activity more evenly, elongating the day “makes no sense at all” and essentially “gamifies” equity trading by creating round-the-clock speculation opportunities.

One Wells Fargo analyst stated: “I cannot think of an action that single-handedly gamifies the stock even more than it already has become.”

Nasdaq’s International Competitiveness Angle

Nasdaq’s justification centers on global competition. Extended hours would theoretically permit international investors—those operating in different time zones, including New York session equivalents in other regions—to access U.S. equities without timing constraints. This positions American markets as more flexible competitors against foreign securities exchanges.

What Happens Next

The proposal now awaits SEC review. If approved, it would fundamentally reshape how millions of retail and institutional traders interact with U.S. equities, introducing trading patterns currently more common in forex and cryptocurrency markets.