NYSE Arca Plans 22-Hour Trading Day for ETFs
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NYSE Arca, which lists nearly 75% of all U.S. exchange-traded fund assets, plans to extend its trading day to 22 hours for all U.S.-listed stocks, ETFs, and closed-end funds, according to an announcement from the New York Stock Exchange.
The move would enable trading from 1:30 a.m. to 11:30 p.m. Eastern Time on weekdays, excluding holidays, subject to regulatory approval, the NYSE’s announcement stated.
The extended hours affect the largest exchange-traded fund trading venue in the U.S., as NYSE Arca currently ranks as the top U.S. exchange for listing and trading exchange-traded funds, with $5.9 trillion in assets in U.S. markets as of Sept. 30, according to the NYSE’s third quarter report.
Global ETF Growth Drives Change
The extension aims to meet growing international demand for U.S.-listed securities, said Kevin Tyrrell, head of markets at the New York Stock Exchange.
“The NYSE’s initiative to extend U.S. equity trading to 22 hours a day, [five] days a week underscores the strength of our U.S. capital markets and growing demand for our listed securities around the world,” Tyrrell stated in the announcement.
The exchange currently handles an average daily value of $149.4 billion in U.S. exchange-traded fund transactions, according to NYSE data.
Trades during the extended hours will continue to be cleared by the Depository Trust & Clearing Corporation, which recently announced plans to extend its operational hours, the NYSE stated.
The move comes as NYSE Arca continued to dominate ETF trading, with 59 new ETFs listed in the third quarter alone and eight issuers debuting new products on the exchange, according to NYSE’s quarterly report.
The exchange also welcomed two ETFs from other exchanges in the third quarter: The JPMorgan Ultra-Short Income ETF (JPST) and the Global X Russell 2000 Covered Call ETF (RYLD).
The exchange will need to file updated rules with the Securities and Exchange Commission for the extended trading hours.