Nasdaq Urges Regulated Standards for 23/5 Trading, Sees 40 Billion Daily Shares
Updated
Updated · Nasdaq · Aug 25
Nasdaq Urges Regulated Standards for 23/5 Trading, Sees 40 Billion Daily Shares
1 articles · Updated · Nasdaq · Aug 25
Summary
Kevin Kennedy said 23/5 trading is inevitable but must be built with regulated-market safeguards, including liquidity, resiliency, transparency and “industrial-grade guardrails” to win institutional trust.
Nasdaq tied that push to global investor demand for always-on access, with key questions still unresolved around overnight liquidity in the 9 p.m.-4 a.m. ET window and whether collateral must move in real time.
U.S. equity volume has already climbed from about 7 billion shares a day before the pandemic to 20 billion last quarter, and Kennedy said 30 billion to 40 billion would not surprise him if the market structure is built correctly.
At the Wyoming Blockchain Symposium, attended by roughly 500 investors, entrepreneurs and policymakers, panelists also said AI should help run extended-hours markets, though Kennedy said humans will remain accountable.
With Nasdaq's 23-hour trading already approved, could thinly traded overnight hours trigger AI-driven flash crashes before human regulators even wake up?
Can AI truly manage the risks of a never-sleeping stock market without replacing the human accountability that regulators demand?
How will Wall Street keep confidential public offerings secret when near-continuous trading eliminates the traditional overnight safe harbor for dealmaking?