For decades, global equity markets have operated within clearly defined trading windows. While pre-market and after-hours sessions exist, most investment managers, service providers, and technology platforms are still fundamentally designed around a single concept: the market close.
That concept is now being challenged.
As exchanges such as Nasdaq, NYSE Arca, and the London Stock Exchange explore—and indeed, launch, in the case of CBOE—extended and near-continuous trading models, the industry is moving toward what could become a 24-hour global marketplace. While the benefits are compelling, the operational and structural implications are significant, and many firms are not yet prepared.
Why the move to 24-hour trading matters
At its core, 24-hour trading represents a shift from regionally segmented markets to a more unified global ecosystem. Instead of US, European, and Asian markets operating in isolation; increased access to liquidity across global markets, pricing, and execution would increasingly flow across time zones.
While discussion of a 23-hour trading day has also gained momentum, it remains to be seen if it is realistic to have only a one-hour window to complete any maintenance or ‘catch up’ on portfolio valuation. This is a major disruption for firms accustomed to predictable trading hours and overnight batch processing. It affects far more than execution alone—it changes how portfolios are managed, valued, monitored, and reported.
What’s driving the shift
Client expectations have changed. Asset classes such as cryptocurrencies and foreign exchange already trade on a near-continuous basis. Investors increasingly expect real-time pricing, real-time risk, and immediate access to liquidity. Globalization of capital continues to accelerate, and advances in technology now make continuous trading operationally possible.
Tokenization and blockchain may ultimately play an important role in enabling continuous markets, particularly through faster settlement and improved transparency. But their impact will be limited unless firms also rethink how they manage liquidity, risk, valuations, and decision making in a near-continuous trading environment.
The operational reality check
From valuation to fund accounting and client reporting, many investment operations are anchored to the market close. Batch processing, overnight controls, and end-of-day cut-offs remain deeply embedded across front-, middle-, and back-office functions.
In a 24-hour trading environment, this model starts to break down. The most basic question firms will need to answer is also the most disruptive: what does “end of day” actually mean when markets never close?
Valuation
Valuation, for one, will need to be redefined in a near-continuous trading model. Rather than relying on a single daily pricing point, firms will need to determine when and how securities will have an ‘official’ value throughout the day.
This has direct downstream implications. Many regional and fund-level compliance rules rely on valuation outputs to complete testing cycles and confirm that funds remain within defined tolerances.
Settlement
Extended trading hours also raise fundamental questions about settlement. The US market only completed the transition to T+1 settlement in May 2024 – a significant operational milestone, with Europe due to follow in October 2027.
In a near-continuous market, settlement may no longer be a discrete daily event. Instead, firms may need to support rolling or all‑day settlement activity, increasing pressure on post‑trade processing, exception management, and liquidity management across time zones.
Fund Accounting
Portfolio and investment accounting models will also need to evolve as monthly and quarterly reporting cycles are built on clearly defined valuation dates and cut-offs. Near-continuous trading erodes these assumptions, raising questions around when NAV strikes should occur in the absence of a defined end-of-day.
One possible outcome is a convergence of IBOR and ABOR models toward a more continuously updated view of portfolio value. As a result, achieving a true Total Portfolio View becomes even more critical. CIOs and investment teams will increasingly need accurate, intraday insight into exposures, performance, and risk across all holdings — not just at market close. This will raise the bar for data quality, integration, and controls.
Client Reporting
Client reporting remains heavily reliant on month- and quarter-end cycles. Continuous trading introduces the possibility of far more dynamic reporting expectations.
In the near term, this may manifest as more frequent ‘as-of’ reporting rather than fully real-time views. Over time, however, there will be further challenges to legacy reporting infrastructures as client expectations are likely to shift toward greater transparency and timelier insight.
Technology and change cycles
Near‑continuous markets also disrupt long‑standing technology deployment and change‑management practices. Historically, firms relied on evenings, weekends, and market closures to perform upgrades and major go-lives.
If we take CBOE’s near-continuous model as an indicative example, moving away from regionally bounded market hours toward extended weekday trading significantly compresses traditional maintenance windows. Rather than relying on overnight or full weekend closures, firms may be left with constrained windows during the trading week and limited downtime over weekends. This dramatically places greater pressure on go-live, testing, and rollback capabilities for both firms and software vendors.
Front-to-back resource requirements
Finally, staffing models will need to change. While it is still unclear whether 24-hour trading will increase or reduce total headcount, it does fundamentally challenge how middle- and back-office teams are staffed and scheduled. These functions have never truly “ended” with the trading day, but extended trading hours push them further away from point-in-time, end-of-day operating models toward continuous coverage.
In the near term, firms may face higher staffing costs as they extend coverage, implement follow‑the‑sun models, or add human oversight to manage intraday complexity. Over the longer term, automation and AI may help absorb some of this operational load but the transition period is likely to be resource‑intensive.
What firms should do now
While a fully continuous market may still be emerging, firms don’t need to wait for a formal switch to begin preparing. There are several practical steps investment managers and service providers can take today.
1. Reassess Operating Models Around “End of Day”
Firms should critically examine which processes truly require an end-of-day cut-off and which exist that way simply due to legacy design. Trade processing, valuation, compliance checks, and reporting workflows should be reviewed with a more continuous operating model in mind.
2. Stress-Test Systems for Extended Trading Scenarios
Portfolio management, order management, risk, and accounting platforms should be evaluated for their ability to:
- Handle near-continuous data feeds
- Support intraday or rolling valuations
- Operate reliably with minimal downtime
Any system dependent on overnight batch cycles is a potential constraint.
3. Revisit Compliance and Control Frameworks
Compliance teams should begin mapping which rules rely on prior-day data, end-of-day positions, or market-close pricing. Firms may need to prepare for more frequent compliance checks and near real-time monitoring.
4. Engage Service Providers Early
Custodians, fund administrators, and technology vendors will all be affected by extended trading hours. Early conversations can help firms understand:
- Provider readiness and roadmaps
- Operational constraints
- Opportunities to influence future capabilities
Waiting until market structures change may limit available options.
5. Evaluate Staffing and Coverage Models
In the short term, continuous trading likely will mean increased human oversight. Firms should consider whether follow-the-sun models, regional handoffs, or selective outsourcing make sense as trading windows expand.
6. Plan for Change — Not Perfection
Regulation, settlement cycles, holidays, and market conventions will not shift overnight. Firms should focus on flexibility.
24-hour stock market trading is not a distant concept. It is an emerging reality driven by client demand, global capital flows, and technology. Concepts and plans for alternative assets exchanges are already in the works.
Investment managers and service providers could jump in early and gain a competitive edge. If service providers find a solution to these operational challenges first, investment managers will be looking to them for assistance to advance their operational models and be ready for this historical change.
The question is no longer whether this change is coming, but how prepared firms will be when it arrives.
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