The Depository Trust and Clearing Corporation (DTCC) subsidiary National Securities Clearing Corporation (NSCC) is set to increase clearing hours to support extended trading.
Brian Steele, DTCC
NSCC has targeted Q2 2026 for implementation, subject to regulatory review and approval of any necessary rule changes.
Extending clearing hours aim to deliver maximum liquidity, alongside reducing counterparty risk, given that NSCC will be able to apply its central counterparty guarantee to overnight activity across different time zones for participants worldwide.
Phase one of the new extended trading hours schedule was implemented by NSCC in September last year, allowing market centres and trading platforms to submit trades at 1.30am ET, which is roughly two and a half hours earlier.
Plans for phase two, expected to take effect in Q2 next year, will see NSCC operate 24/5 from Sunday at 8pm ET to Friday at 8pm ET, to support overnight trading activity from alternative trading systems and exchanges.
“As interest in near round-the-clock trading of US 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,” said Brian Steele, managing director, president of clearing and securities services at DTCC.
“[…] 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 US trading day.”
With the industry indicating a preference to establish standard operating hours across exchanges and ATS providers for the US market, NSCC added that it will continue to work with SIFMA, regulators and the industry to support the alignment of extended trading hours and any required changes to post-trade processes.
Steve Byron, managing director, head of technology, operations and business continuity at SIFMA, said: “SIFMA and its membership are supportive of the establishment of a consistent US trading day across exchanges which enables increased access to US 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 minimie disruption to firms and existing post-trade clearing and settlement processes.”
Over the last few months, major exchanges have begun to push for expanded trading hours on their platforms. Most recently, Nasdaq stated that it began engaging with regulators to enable 24-hour trading, five days a week on the Nasdaq Stock Market.
Read more: Nasdaq to launch 24-hour trading for US equities
Nasdaq will join Cboe Global Markets and the New York Stock Exchange (NYSE), who have also announced plans for extended trading hours for equities.