What Does it Take to Offer Around the Clock Equities Trading?

February 2, 2025

Markets have become increasingly interconnected in recent years, and investors worldwide are more eager than ever to access markets outside of their own country. As Dave Howson wrote on Cboe Insights, according to the U.S. Department of the Treasury — which releases this data annually in February — foreign investors owned $26.86 trillion in U.S. securities as of June 2023, up from $24.8 trillion in June 2022. Further, foreign investors’ equity holdings in 2023 were up 124% from 2016, climbing from $6.1 trillion to $13.7 trillion in that time frame. As this participation increases, it is no surprise that investors would want access to these markets during their local regular trading hours.

Cboe has continued to seek ways to serve this growing demand, offering Early Hours Trading on its U.S. equities exchanges and Global Trading Hours for certain derivatives products. However, the demand for more access to U.S. equities markets — potentially on a 24-hours, five-days-a-week (24x5) basis — has never been stronger, and Cboe is prepared to deliver, as soon as the necessary regulatory approvals and industry developments are in place.

Growth in Early Hours Trading

Currently, Cboe’s EDGX® Equities exchange opens for Early Hours Trading at 4 a.m. ET, and the continued growth of the early morning session is a great example of the rising interest in U.S. equities trading worldwide. Average daily volume (ADV) during Early Hours Trading on Cboe’s U.S. equities exchanges increased 51% from 2023 to September 2024 and increased 135% between 2022 and September 2024.

Source: Cboe Data

Not only has the Early Hours Trading volume been increasing, but Cboe’s market share in Early Hours trading has also increased since 2022. Between 2023 and 2024 alone, Early Hours Trading ADV increased 93%.

What Needs to Happen for 24x5 Trading to Move Forward

Expanding an equities exchange to operate 24 hours a day, five days a week requires regulatory approval from the SEC. The biggest hurdle to 24x5 trading is that the SEC requires that exchanges report trades and quotes to the Securities Information Processors (“SIPs”) in real-time and therefore exchanges can only operate while the SIPs are operating. The SIPs are not currently open during Dark Hours: 8 p.m. - 4 a.m. ET. As an example, the chart below highlights the overlap between Japan daytime, or regular trading hours, and U.S. Dark Hours.

As with any operational change, it is likely that the operational changes needed to enable the SIPs to operate during Dark Hours will take significant time and effort. Moreover, these initiatives are likely to be delayed given the SEC’s recent passage of Amendments to Regulation NMS regarding Minimum Tick Sizes and Access Fee Caps, as well as amendments to definitions of round lot sizes, and the addition of odd lot quotations to the SIPs (the “Final Rule”). The Final Rule implies there is significant work for the SIPs to accomplish to comply with the Final Rule’s compliance dates, which may compete with the resources and work necessary to accommodate Dark Hours trading.  

Subject to industry development, 24-hours a day SIP operations, and SEC approval of Cboe’s 24x5 proposal, Cboe will be ready to open its equities exchanges 24x5. 

Cboe and 24x5 Trading

Cboe offers near 24x5 Global Trading Hours (GTH) for multiple proprietary products, including VIX® futures and SPX and VIX options. This enables market participants trading Cboe’s derivatives products to react to news in real time, regardless of when ‘morning’ is for them, and we are eager to provide the same market accessibility for U.S. equities traders.

Cboe’s existing model for around-the-clock derivatives trading serves as the blueprint for expanded equities trading hours. Not only is Cboe already equipped with the technological capabilities to offer 24x5 trading, as the only truly global exchange, Cboe is also especially well positioned to support 24x5 trading. With our locally optimized, globally consistent approach, we already have knowledgeable people based in the regions most interested in 24x5 trading, including Japan, Singapore, Hong Kong and Sydney. These Cboe team members have a thorough understanding of the local markets and investment goals, as well as extensive knowledge of Cboe’s global markets and offerings, meaning they will be ready to help market participants get up to speed as soon as 24x5 trading is available.

In the meantime, we will continue offering Early Hours Trading and seeking additional ways to help global investors access our markets.

The information provided is for general education and information purposes only. No statement provided should be construed as a recommendation to buy or sell a security, future, financial instrument, investment fund, or other investment product (collectively, a “financial product”), or to provide investment advice. © 2025 Cboe Exchange, Inc. All Rights Reserved.