The New York Stock Exchange Plans to Extend Weekday Trading on its NYSE Arca Equities Exchange to 22 Hours a Day

Rhea-AI Summary

The New York Stock Exchange (NYSE) has announced plans to extend weekday trading hours on its NYSE Arca equities exchange to 22 hours a day, from 1:30 am to 11:30 pm Eastern Time, subject to regulatory approval. The extended trading will apply to all U.S.-listed stocks, ETFs, and closed-end funds on NYSE Arca, which is currently the leading U.S. exchange for ETF listing and trading. The initiative aims to support global, exchange-based trading of U.S.-listed equity products, with trades to be cleared by the Depository Trust & Clearing The NYSE will file updated rules with the SEC and seek support from U.S. securities information processors for this extension.

Positive

• Expansion of trading hours to 22 hours per day increases market accessibility and trading opportunities
• Potential for increased trading volume and revenue through extended trading hours
• Enhanced global market presence and competitiveness

Negative

• Implementation subject to regulatory approval, creating uncertainty
• Additional operational costs and infrastructure requirements for extended hours

Insights

Market Structure Expert

The NYSE's planned expansion to 22-hour trading represents a significant structural shift in U.S. equity markets. This move will align American markets more closely with global trading cycles, particularly benefiting Asian and European investors who previously had access to U.S. securities during their primary trading hours.

The initiative has several key implications:

• Enhanced liquidity across time zones, potentially reducing price gaps between sessions
• Increased competition with international exchanges and 24/7 crypto markets
• Greater trading opportunities for ETFs, which make up a substantial portion of NYSE Arca's volume

The DTCC's support for extended clearing operations is important for risk management and settlement efficiency. However, investors should note that extended hours typically experience lower liquidity and higher volatility than regular sessions.

Financial Technology Analyst

This expansion necessitates significant technological infrastructure upgrades across the trading ecosystem. The extended hours will require:

• Enhanced real-time risk management systems
• Upgraded market data distribution capabilities
• Modified surveillance systems for detecting manipulation across extended periods

For ICE, this represents a strategic revenue opportunity through increased trading volumes and market data fees. The initiative could particularly benefit their data and analytics business segment, as 22-hour trading will generate substantially more market data and create demand for new analytical tools.

Will support the global, exchange-based trading of all U.S.-listed equity products

Extended-hours trades to be cleared by DTCC

NEW YORK--(BUSINESS WIRE)-- The New York Stock Exchange, part of Intercontinental Exchange, Inc. (NYSE: ICE), a leading global provider of technology and data, today announced plans to extend weekday trading on its NYSE Arca equities exchange to 22 hours a day.

The extended trading would take place from 1:30 am to 11:30 pm Eastern Time on all weekdays, excluding holidays, subject to regulatory approval. The NYSE will also seek support for extended trading from the U.S. securities information processors. NYSE Group’s NYSE Arca is a fully electronic exchange that ranks as the top U.S. exchange for listing and trading exchange-traded funds. All U.S.-listed stocks, ETFs and closed-end funds would be available for trading on NYSE Arca during the 22-hour weekday sessions.

“The NYSE’s initiative to extend U.S. equity trading to 22 hours a day, 5 days a week underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world,” said Kevin Tyrrell, Head of Markets, New York Stock Exchange. “As the steward of the U.S. capital markets, the NYSE is pleased to lead the way in enabling exchange-based trading for our U.S.-listed companies and funds to investors in time zones across the globe.”

The NYSE plans to file updated rules with the Securities and Exchange Commission for the extended trading. Trades taking place on NYSE Arca during these additional extended hours will continue to be cleared by the Depository Trust & Clearing Corporation, which recently announced plans to extend its hours of operation.

About Intercontinental Exchange

Intercontinental Exchange, Inc. (NYSE: ICE) is a Fortune 500 company that designs, builds and operates digital networks that connect people to opportunity. We provide financial technology and data services across major asset classes helping our customers access mission-critical workflow tools that increase transparency and efficiency. ICE’s futures, equity, and options exchanges – including the New York Stock Exchange – and clearing houses help people invest, raise capital and manage risk. We offer some of the world’s largest markets to trade and clear energy and environmental products. Our fixed income, data services and execution capabilities provide information, analytics and platforms that help our customers streamline processes and capitalize on opportunities. At ICE Mortgage Technology, we are transforming U.S. housing finance, from initial consumer engagement through loan production, closing, registration and the long-term servicing relationship. Together, ICE transforms, streamlines and automates industries to connect our customers to opportunity.

Trademarks of ICE and/or its affiliates include Intercontinental Exchange, ICE, ICE block design, NYSE and New York Stock Exchange. Information regarding additional trademarks and intellectual property rights of Intercontinental Exchange, Inc. and/or its affiliates is located here. Key Information Documents for certain products covered by the EU Packaged Retail and Insurance-based Investment Products Regulation can be accessed on the relevant exchange website under the heading “Key Information Documents (KIDS).”

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 – Statements in this press release regarding ICE's business that are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of additional risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see ICE's Securities and Exchange Commission (SEC) filings, including, but not limited to, the risk factors in ICE's Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the SEC on February 8, 2024.

Category: NYSE

View source version on businesswire.com: https://www.businesswire.com/news/home/20241025235193/en/

NYSE Media Contact:

Lauren Sullivan

lauren.sullivan@nyse.com

(212) 656-2321

ICE Investor Contact:

Katia Gonzalez

katia.gonzalez@ice.com

(678) 981-3882

Source: Intercontinental Exchange

FAQ

What are the new trading hours planned for NYSE Arca (ICE)?

NYSE Arca plans to operate from 1:30 am to 11:30 pm Eastern Time on weekdays, excluding holidays, extending to 22 hours per day.

Which securities will be available during NYSE Arca's extended hours?

All U.S.-listed stocks, ETFs, and closed-end funds will be available for trading during the 22-hour weekday sessions.

Who will clear trades during NYSE Arca's extended hours?

The Depository Trust & Clearing (DTCC) will continue to clear trades during the extended hours.

Does NYSE Arca's extended hours plan require regulatory approval?

Yes, the plan requires SEC approval, and NYSE will need to file updated rules with the Securities and Exchange Commission.