DTCC, the market infrastructure for the global financial services industry, and Ernst & Young LLP (EY US) announced the release of their latest research findings on 24×5 trading, entitled “The Shift to 24×5 Trading: What It Means for U.S. Equity Markets.” The report details the industry’s transition toward near-continuous trading, operational and risk implications, as well as more strategic considerations for market participants “in preparation for the change.”
Key findings shared by DTCC include:
- Impact to volumes: Most surveyed firms expect overnight trading volumes to gradually rise. By 2028, 1%–10% of total equity volume is projected to be traded during the overnight sessions, boosting global market access.
- Retail and institutional participation: Retail investors are expected to initially drive overnight trading, with institutional participation assumed to rise during market stress and as infrastructure develops. Over half of survey respondents foresee greater institutional activity in volatile periods.
- Market harmonization and safeguards: Extending trading hours requires aligning market safeguards, such as circuit breakers and surveillance, and updating SIP data feeds to a 24×5 model for real-time accuracy and market stability.
- Risk, margin, and liquidity: Extended hours add complexity to risk, margin, and liquidity management. Almost 60% of firms plan technology and risk upgrades.
Global demand, especially from APAC investors, and regulatory permissibility are key “drivers for the move to 24×5 equity trading.”
The convergence of securities and crypto brokerages is “also influencing expectations for near continuous access.”
Firms are encouraged to assess their readiness, “participate in industry forums, enhance risk management and operational capabilities, and critically evaluate their global footprint and vendor dependencies.”
Val Wotton, DTCC’s Managing Director and Global Head of Equities Solutions:
“As interest in near round-the-clock trading of U.S. equities grows, we are meeting this demand by extending our clearing hours to support our clients and further strengthen the safety and soundness of the markets. DTCC is committed to leading large-scale, industry-wide initiatives that deliver positive change for the industry and the investing public. We look forward to continuing to work collaboratively across the industry towards a successful implementation.”
Mark Nichols, Principal and Capital Markets Strategy & Market Structure Leader, EY US said:
“Extending trading hours represents a significant step for U.S. equity markets, aligning market structure with the expectations of an increasingly global, always-on investor base. Through this collaboration with DTCC, we aim to equip market participants with clear, actionable insights on navigating the complex firmwide implications and operating model considerations of a 24×5 trading environment — helping the industry collectively build a more accessible and resilient marketplace.”
In March of this year, DTCC announced NSCC’s intention to “extend clearing hours to support 24×5 trading, from Sunday at 8:00 PM ET to Friday at 8:00 PM ET, targeted for implementation in Q2 2026.”
In support of this paper, DTCC has reportedly surveyed “95 participants from 84 firms, including 72 NSCC members.”