Paul Conn
President, Global Capital Markets

In addition to the T+1 settlement period, US markets are already planning to extend trading hours to 23 hours a day, five days a week (23x5). This ambitious move aims to enhance market competitiveness and accessibility. The combination of these two reforms – shortened settlement periods and extended trading hours – will undoubtedly reshape the landscape of global equity markets.
These reforms are poised to have a profound impact on market competitiveness. As markets strive for growth, the question arises: Will increased accessibility to live US bids and offers during the trading hours of other regions, such as the UK or Australia, drive more money into local markets? Even if the influx is primarily retail money, the aggregated global investment could significantly benefit US markets, potentially offsetting recent institutional outflows.
It will be fascinating to observe these micro reforms in action and their influence on the trend of international companies seeking US listings. The depth and liquidity of US markets have long attracted international firms, and these changes may further drive inbound listings to exchanges like Nasdaq and NYSE. While extended trading hours might slightly dilute liquidity across a longer day, they are likely to attract additional international interest from offshore investors, capturing non-US currencies, such as pound or yen, in the process, which may have been invested outside the US otherwise.
While some industry experts advocate for more transformative changes, such as 24x7 trading and the tokenization of securities on ledgers, these innovations introduce additional complexities. At present, we should be focusing on the immediate changes occurring here and now over the next 2-3 years, emphasizing the importance of modernizing market infrastructure during this pivotal period.
It is evident we have entered a new phase of competition between markets, driven by these reforms. This shift is bound to catalyze further changes with far reaching possibilities.