SIPs Introduce New Plan Amendment for Overnight Trading Hours
Plan Amendment has been Submitted to the SEC, Targeting a December 2026 Launch
Today, the Operating Committees of the Securities Information Processors (SIPs) announced a significant step toward extending their operating hours to embrace overnight trading. This initiative, pending review and approval by the Securities and Exchange Commission (SEC), aims for a potential launch in December 2026.
The Path to Implementation
Following the submission of the Plan Amendment to the SEC, the Commission will have a maximum of 300 days to either approve or disapprove it. During this period, the SEC is expected to publish the Amendment and provide a comment period for industry stakeholders and the public to share their insights. However, factors like other SEC priorities, including changes to minimum price increments, may influence the intended launch date.
Proposed Operating Hours Structure
As highlighted in prior announcements, the proposed hours for trading are set to extend as close as technically possible to 24 hours each day, from 9:00 PM on Sundays to 8:00 PM (ET) on Fridays, with a one-hour technical pause incorporated into each trading day. This structure will promote a more synchronized global trading environment.
The one-hour technical break, scheduled to occur from 8:00 PM (ET) from Monday to Thursday, is designed to enable market participants to refresh their systems. After this pause, trading for the new day will commence immediately. The SIPs are optimistic about the potential to eventually reduce the duration of this pause.
Comparison of Current and Proposed Operating Hours
Current Hours of Operation (excluding holidays):
- Early Hours: 4:00 AM – 9:30 AM (ET)
- Regular Hours: 9:30 AM – 4:00 PM (ET)
- Late Hours: 4:00 PM – 8:00 PM (ET)
Proposed Operating Hours (excluding holidays):
- Early Hours: Following the technical pause until 9:30 AM (ET)
- Regular Hours: 9:30 AM – 4:00 PM (ET)
- Late Hours: 4:00 PM – 8:00 PM (ET)
Chairman Jeff Kimsey expressed, "The investment community has articulated its wish to enhance equity trading hours to support a more global trading framework. The SIPs have embraced this Plan Amendment to facilitate this much-needed change. We are excited about working together with industry partners to push U.S. equity markets forward."
Understanding the Role of SIPs
The Securities Information Processors are critical entities that connect the U.S. markets by processing and consolidating protected equities bid and ask quotes and trades from all registered exchanges. This consolidation creates a unified, easily accessible data feed for investors around the globe. The SIPs are an essential part of the U.S. market structure, ensuring transparency and accessibility for all investors.
It's important to note that there are two main SIPs: the Consolidated Tape Association (CTA) and Consolidated Quotation System (CQ) SIP, and the Unlisted Trading Privileges (UTP) SIP. The CTA/CQ SIP manages real-time quote and trade information for securities listed on major exchanges, while the UTP SIP focuses on Nasdaq-listed securities. This dual structure has been a regulatory requirement since the late 1970s, aimed at providing consolidated trade and quote information worldwide.
Governed by a defined operational plan, each SIP operates with the guidance of an Operating Committee made up of its participants, all working together to shape policies, select responsible system processors, and evaluate performance to improve functionality continuously. The New York Stock Exchange undertakes the administrative tasks for CTA/CQ SIP Plans, while Nasdaq oversees the UTP SIP.
One of the primary missions of the SIPs remains that of transparency. Both the CTA/CQ and UTP Operating Committees meet on a quarterly basis, posting summaries and updates on their respective websites, along with essential performance metrics and pricing information.
Media Contact
Rafi Reguer
Forefront Communications for the SIP Operating Committees
+1 (718) 781-4946
Frequently Asked Questions
What is the purpose of the SIPs' Plan Amendment?
The Plan Amendment aims to extend trading hours to facilitate overnight trading, catering to a global market.
When is the anticipated launch of the new trading hours?
The proposed launch is targeted for December 2026, pending SEC approval.
What is the duration of the technical pause during trading hours?
The technical pause is planned for one hour each day from Monday to Thursday at 8:00 PM (ET).
How do SIPs ensure transparency in trading?
SIPs are governed by Operating Committees that review policies and performance regularly, ensuring market transparency.
Where can I find more information about the SIPs and their operations?
For additional details, check the dedicated SIP websites which contain policies, performance metrics, and announcements.
