The End of the Bell:
Nasdaq’s 2026 Proposal for 24/7 Trading

I. Abstract: The Fossilization of the 9:30 AM Bell

As of early 2026, the concept of "Market Hours" is rapidly becoming an anachronism. Nasdaq’s recent filing with the U.S. Securities and Exchange Commission (SEC) to extend trading for U.S.-listed securities into a near 24/7 cycle marks the formal surrender of legacy exchange models to the reality of the **Global Financial Internet**. This transition is not merely a convenience for retail traders; it is a structural response to the rise of overnight ATS (Alternative Trading Systems) and the increasing demand for "Real-Time Risk Management."

II. The Catalysts: Why Now?

Several convergences have forced the hand of the major exchanges, primarily the migration of high-conviction liquidity to offshore and decentralized venues during the "dark" hours of the U.S. session.

III. Structural Impact: Liquidity Fragmentation

The primary concern cited by market makers (MMs) is the **Thinning of the Book**. When liquidity is spread across 24 hours instead of 6.5, the bid-ask spreads at 3:00 AM ET are inherently wider, increasing the "Cost of Immediacy."

IV. Infrastructure Requirements for 24/7 Operations

Maintaining a primary exchange for 24 hours requires a total overhaul of **Settlement and Clearing** (The "Plumbing").

• Real-Time Risk Monitoring: Margin calls and liquidations must be processed continuously, requiring massive upgrades to automated credit systems.

• Human-in-the-Loop Shifts: While the trading is algorithmic, regulatory oversight and system maintenance still require global, multi-shift workforce distribution.

V. Conclusion: The Competitive Mandate

For Nasdaq, this is not optional. With venues like **Blue Ocean** and various overnight trading platforms already capturing significant after-hours volume, the primary exchanges must adapt or risk becoming "Secondary Settlement Layers" for the dark pools. As we move through 2026, the SEC's decision will determine whether the United States remains the primary domicile for global price discovery or if the sun truly never sets on the financial markets somewhere else.