Securities Information Processors Propose Extended Trading Hours for Global Equity Markets

SIPs Submit Plan Amendment for Extended Trading Hours

The Operating Committees of the Securities Information Processors (SIPs) have recently announced their proposal to extend trading hours to facilitate overnight transactions. This initiative aims to cater to a global audience and is currently pending review by the Securities and Exchange Commission (SEC).

Proposed Trading Hours

The SIPs are aiming for an ambitious plan to set operating hours that are as close to 24 hours as possible. The current proposal outlines a schedule that would operate from 9 PM on Sundays to 8 PM on Fridays, with a brief technical pause each day. This pause aims to refresh systems, ensuring uninterrupted service and enhanced trading efficiency. Specifically, the pause is set to occur between 8 PM and 9 PM from Monday to Thursday, after which the new trade date will begin. This improvement is expected to significantly enhance the trading capabilities and market accessibility for participants.

Current vs. Proposed Hours

To appreciate this development, it's essential to compare the current trading hours with the proposed new hours. At present, the trading sessions include:

- Early Hours: 4 AM – 9:30 AM (ET)
- Regular Hours: 9:30 AM – 4 PM (ET)
- Late Hours: 4 PM – 8 PM (ET)

In contrast, the proposed hours would reshape this framework into:

- Early Hours: 9 PM – 9:30 AM (ET, following the pause)
- Regular Hours: 9:30 AM – 4 PM (ET)
- Late Hours: 4 PM – 8 PM (ET)

This structural change reflects a broader trend towards accommodating the demands of a global trading environment, allowing for a wider participation window for international investors.

Industry Feedback and Next Steps

Jeff Kimsey, the Chairman of the SIP Operating Committees, emphasized the investment community's request for extended trading times to support a more global trading framework. The SIPs intend to collaborate closely with the industry during this process, ensuring that all stakeholders have their voices heard.

Upon submission of the plan, the SEC will take up to 300 days to respond. The Commission is expected to publish the Amendment for public comment, allowing industry participants to express their opinions. This feedback process is crucial as it may influence the implementation timeline as planned for December 2026. Furthermore, other ongoing SEC initiatives, particularly regarding changes in minimum price increments, could affect the timing as well.

About the Securities Information Processors

The SIPs play an essential role in maintaining transparency and consistency within U.S. markets. By processing and consolidating bid/ask quotes and trades across various exchanges, they ensure that market data is accessible and reliable for all investors. This initiative to extend trading hours marks a significant evolution in market structure, as it acknowledges the growing need for investors to operate across different time zones and adapt to a more interconnected financial landscape.

Overall, the proposed extension of operating hours for SIPs signals a pivotal transition in equity market trading, aligning with the demands of a changing global economy and enhancing overall market accessibility.