The National Association of Securities Dealers gave preliminary approval Thursday to a plan which would see Nasdaq trading hours extended into the evening. The NASD has yet to set a timetable for the proposed change, but hinted that it would not take place until next year. The Securities and Exchange Commission – which would have to approve any such change – has said it backs the proposal, as well, but also would prefer putting the move off until after Y2K issues have been resolved. Any extension of hours would come as traditional markets compete for business with electronic and internet trading firms such Eclipse Technology Inc or Wit Capital Group Inc.
The NASD is considering a plan that would open a second trading session from 5:30pm EST to either 9pm or 10pm. The Nasdaq currently trades from 6:30am until 4:00pm. The stocks available for trade in the evening session would likely be those in the Nasdaq 100 index, which represent its largest companies and most active issues. The NASD will now discuss the matter with brokerage houses and the SEC before making any final decisions on how to proceed. The New York Stock Exchange is mulling a similar extension of trading.
