The National Securities Clearing Corporation (NSCC), a subsidiary of the Depository Trust & Clearing Corporation (DTCC), is set to extend its clearing hours in response to increasing global trading activity. The change, planned for the second quarter of 2026 pending regulatory approval, will allow NSCC to process trades nearly continuously from Sunday evening to Friday evening Eastern Time. The expansion aims to facilitate overnight trading, improve liquidity, and reduce counterparty risk.
The move follows an initial phase implemented in September 2024, which allowed trade submissions to begin 2.5 hours earlier at 1:30 AM ET. The second phase will further extend clearing to operate 24×5, aligning more closely with international markets. NSCC has stated that it will coordinate with the Securities Industry and Financial Markets Association (SIFMA), regulators, and market participants to address operational and settlement adjustments needed for the expanded schedule.
Operational considerations
The proposed extension has drawn a range of responses from market participants. While some firms see it as a necessary adaptation to evolving trading patterns, others highlight the operational challenges that come with a shift to near-continuous clearing. Steve Byron, Managing Director at SIFMA, noted that while expanded hours could increase global access to U.S. markets, firms will need to address potential disruptions in settlement processes and infrastructure readiness.
Executives from trading venues such as 24 Exchange, Blue Ocean ATS, Nasdaq, NYSE, and Cboe Global Markets have indicated that the changes could enhance market efficiency and provide investors with more flexibility. However, as firms prepare for the transition, questions remain about how post-trade systems will adapt to the increased clearing window. DTCC has stated that it will continue working with industry stakeholders to ensure a smooth implementation and minimise disruptions to existing workflows.
