Cboe Seeks SEC Nod for 24x5 US Stock Trading

Cboe Proposes Near 24x5 US Equities Trading

Exchange operator Cboe has submitted a formal proposal to the U.S. Securities and Exchange Commission to launch nearly 24-hour, five-day-a-week trading for U.S. equities. The initiative, planned for its EDGX Equities Exchange, targets a December 2026 launch, pending regulatory approval.

Competitive Market Landscape

This filing positions Cboe in a growing movement among exchanges to accommodate surging investor demand for continuous trading. The move rivals plans from competitor Nasdaq, which also intends to file for round-the-clock trading. Cboe highlighted a 590% growth in average daily volume during its extended hours from February 2022 to February 2026, underscoring the demand.

Impact on Market Structure

If approved, Cboe's service would enable trading from Sunday at 9 p.m. ET through Friday at 8 p.m. ET, with a one-hour daily operational pause. This expansion would offer global investors greater flexibility and could significantly boost liquidity and trading activity outside of traditional market hours, reshaping the U.S. equities market.

Outlook and Next Steps

Cboe's proposal is a significant step toward making overnight U.S. stock trading a reality. The market will closely monitor the SEC's review, as a favorable decision could establish a precedent for other exchanges and fundamentally alter the accessibility and dynamics of U.S. stock trading.

FAQ

Q: When does Cboe plan to launch 24x5 trading?
A: Cboe is targeting a launch date of December 2026, subject to SEC approval.

Q: Which other major exchange is planning a similar service?
A: Nasdaq has also stated its intention to pursue round-the-clock U.S. stock trading.

Source: Investing.com