Overseas demand for the United States' capital heavy equities market has prompted the Nasdaq to look at introducing 24-hour trading five days a week next year on its flagship American exchange, its President Tal Cohen wrote in a LinkedIn post.
The value of total foreign holdings of U.S. equities had reached $17 trillion by June 2024, a 97% increase since 2019 and Nasdaq president Tal Cohen wants to increase exposure to global investment on the share register.
“Wealth accumulation across major regional economies reduces barriers to accessing markets, and an ever-increasing appetite to share in global prosperity is driving investors to engage with U.S. markets more than ever before,” Cohen says.
"In the APAC region, investors are increasingly turning their attention to U.S. markets, drawn by the depth of opportunities, strong regulatory framework and access to high-growth sectors such as technology and healthcare.
"With rising financial literacy and proliferation of digital trading platforms, these investors have become more sophisticated - leveraging a diverse range of strategies, such as investing in options and ETFs.
Further proof of global interest was that over 56 exchange traded products launched in the last five years tracking the Nasdaq-100 Index - 98% of which were introduced outside of the U.S.
“Now is the time to engage in rigorous analysis, share insights, and design systems that ensure extended trading hours enhance, rather than adversely impact, the quality of our markets," Cohen said.
The question is not whether we can build a market that operates 24/5, but how we do so in a way that strengthens investor confidence in U.S. capital markets today.”
