NSCC plans extended clearing hours for 24/5 trading

The National Securities Clearing Corporation (NSCC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), has announced plans to extend its clearing hours to accommodate round-the-clock trading by Q2 2026. This move is pending regulatory review and approval.

The extension of clearing hours is anticipated to enhance liquidity and decrease counterparty risk, providing a central counterparty guarantee to overnight activities for global participants across various time zones. NSCC had previously implemented phase one of this initiative in September 2024, allowing market centres and trading platforms to begin submissions at 1:30 AM ET. The upcoming phase two will see NSCC operating 24 hours from Sunday 8:00 PM ET to Friday 8:00 PM ET, supporting 24/5 trading activities from Alternative Trading Systems (ATS) and Exchanges.

Brian Steele, Managing Director and President of Clearing and Securities Services at DTCC, explained, "As interest in near round-the-clock trading of U.S. equities grows, we are meeting this demand by extending our clearing hours to support our clients and further strengthen the safety and soundness of the markets. DTCC is committed to leading large-scale, industry-wide initiatives that deliver positive change for the industry and the investing public. We look forward to continuing to work collaboratively across the industry towards a successful implementation. At the same time, we remain engaged with SIFMA to align to a consistent view of the U.S. trading day."

Steve Byron, Managing Director, Head of Technology, Operations and Business Continuity at SIFMA, added, "SIFMA is working across our membership on the proposed expansion of trading hours. SIFMA and its membership are supportive of the establishment of a consistent U.S. trading day across exchanges which enables increased access to U.S. markets for a global client base. The expansion of trading hours, however, presents several challenges for the industry that will need to be overcome to minimize disruption to firms and existing post-trade clearing and settlement processes."

24 Exchange CEO and Founder, Dmitri Galinov, commented on the development, saying, "This is a significant moment for round-the-clock trading that will provide immense global benefits. As the first national securities exchange in the U.S. that is approved to offer trading of U.S. securities 23 hours each workday, we applaud DTCC for further expanding the clearing hours offered through the NSCC. The move will support extended trading on the 24X National Exchange that we are currently building and will benefit the global broker-dealer institutions it will serve."

Brian Hyndman, CEO of Blue Ocean Technologies, remarked on the impact of the extended clearing hours, stating, "When Blue Ocean ATS officially launched, we recognized the void in the after-hours markets and set out to empower investors worldwide to trade stocks beyond traditional hours. Today, we are seeing success in our mission by affording investors more choices, tools, and data to trade while navigating volatile markets confidently, leveraging the extended NSCC hours that were introduced in September. We look forward to the additional advancements in 2026."

Jason Wallach, CEO of Bruce Markets, sees the decision as a notable progression, "DTCC's decision to extend NSCC's clearing hours is a monumental advancement that underscores the growing legitimacy and demand from the investment community for continuous trading. This move aligns with our vision at Bruce Markets to modernize U.S. equities trading by providing robust, secure, and dependable access during non-traditional hours. It highlights the growing demand and natural progression toward a 24-hour trading day, creating a more inclusive and responsive trading environment across global time zones."

Oliver Sung, Head of North American Equities at Cboe Global Markets, stated, "Cboe has been a leader in expanding market access, offering overnight trading for SPX options and VIX options and futures, 24x5 trading in our FX markets, and early trading hours on our U.S. equities exchange. As we now look to leverage our global technology platform and proven market expertise to enable 24x5 trading for U.S. equities – subject to regulatory review – we are pleased to see DTCC's support and commitment to providing the critical clearing infrastructure that will be an essential component to a successful implementation."

Kevin Kennedy, Executive Vice President and Head of North American Markets at Nasdaq, remarked, "Overnight trading represents the next step in the evolution of the U.S. Equity markets, offering a pivotal opportunity to broaden investor access and redefine the trading ecosystem. We recognize the magnitude of this change and the need for the industry to come together to ensure a seamless transition for market participants. As part of that collaboration, we are proud to partner with the DTCC and NSCC with the goal of providing extended clearing hours that support a robust trading environment."

Kevin Tyrrell, Head of Markets at NYSE, shared his perspective, "The New York Stock Exchange is proud to be the first established equity exchange to file and receive SEC approval to extend trading hours for U.S. listed companies and funds, providing access to investors in various time zones worldwide. This initiative highlights the continued advancement of our capital markets and the increasing global demand for U.S. listed securities. We look forward to continuing to work with the DTCC and the broader industry to further this effort."

Michael Sanocki, CEO of RQD, added, "RQD is uniquely positioned with a flexible clearing platform that enabled us to quickly adopt the earlier clearing hours offered by NSCC. This capability positions us to be an example of the benefits that the shift in trading hours can bring to global market participants, such as executing trades seamlessly, efficiently, and securely."

Steele further highlighted the collaboration, "We are pleased to have worked with 24 Exchange, Blue Ocean Technologies, Bruce Markets, Cboe Global Markets, Nasdaq, NYSE and RQD, as well as SIFMA and other key stakeholders across the industry, as we extend NSCC's clearing hours. Reducing the time between trade execution and NSCC's trade clearance and guarantee process is critical in reducing counterparty risk and bringing increased safety and soundness to markets."