Nasdaq CEO Adena Friedman on the Future of 23-5 Trading | At Barron's

Why It Matters

By opening U.S. equities to near‑continuous trading, Nasdaq expands global investor participation, fuels demand for its high‑margin fintech services, and reshapes the competitive landscape of U.S. exchanges.

Key Takeaways

• Nasdaq will launch 23‑5 trading on Dec 6, expanding hours.
• New hours aim to serve global investors and retail growth.
• Consolidated tape and real‑time clearing will safeguard market integrity.
• Nasdaq’s fintech solutions now generate ~75% of its revenue.
• Expanded trading could boost demand for Nasdaq indexes and ETFs.

Summary

Nasdaq CEO Adena Friedman announced that the exchange will begin “23‑5” trading on December 6, extending market hours to 23 hours a day, five days a week – the first major U.S. venue to offer near‑round‑the‑clock access.

Friedman explained that trading outside regular 9:30 a.m.–4 p.m. hours already occurs in “the dark,” with Nasdaq’s systems running from 4 a.m. to 8 p.m. The new schedule adds an hour‑long pause at 8 p.m. and then reopens from 9 a.m. to 4 p.m., effectively covering the global trading day. To support the expansion, Nasdaq is rolling out a consolidated tape for transparent trade reporting, limit‑up/limit‑down safeguards, and real‑time clearing through an extended DTCC window.

The move reflects Nasdaq’s broader shift toward fintech; about 75 % of its revenue now comes from technology and data solutions, while trading accounts for roughly 20‑25 %. Friedman highlighted the platform’s appeal to innovators, citing potential listings such as SpaceX and referencing her childhood astronaut dream as a personal motivator.

For investors, 23‑5 trading promises greater liquidity and access to U.S. equities outside traditional hours, likely boosting demand for Nasdaq’s index and ETF products. The initiative also puts pressure on rival exchanges to modernize and may accelerate regulatory discussions around market integrity, clearing, and disclosure reforms.

Original Description

Adena Friedman, CEO of Nasdaq, spoke to Barron's editor at large Andy Serwer about the changes coming to financial markets.

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