Non-stop trading - starting this December, Nasdaq trading will operate 23 hours a day - 5 days a week.
A very significant event where the big winners are all those involved:
- Trading platforms.
- Infrastructure providers.
- The exchanges themselves.
Naturally, any additional activity generated during night hours directly translates to higher trading volumes and an increase in revenue from commissions and market data sales.
Who are we following?
1. Nasdaq - $NDAQ (not the index, the exchange)
The exchange itself is leading this strategic move, and it will directly profit from the additional volumes and from selling new and upgraded information products. (Like their data feed's Plus series)
2. Interactive Brokers - $IBKR
A giant broker serving traders, investors, and institutional clients worldwide, providing fast access to global markets - and now - 23 hours a day.
3. Robinhood - $HOOD
A platform that pioneered extended trading access for retail traders and investors and is expected to attract higher activity volumes due to this move.
4. Financial data provider - Intercontinental Exchange - $ICE
A financial data and trading infrastructure provider, the "technological arteries of the move" - possessing critical infrastructure and trading data feeds integrated with night and alternative trading systems like BOATS, and benefiting from increased demand for real-time information.
5. Market makers and large institutional investors providing liquidity - Virtu Financial - $VIRT
An algorithmic trading firm and one of the largest market makers in the world, 23-hour trading requires entities to provide liquidity during the sparse night hours, and trading powerhouses like Virtu reap handsome profits from the wider bid-ask spreads characteristic of night hours.