TRADING
Markets Want More Hours, But Liquidity Wants Ritual
Kellogg Insight examined the push toward longer trading hours as Nasdaq and NYSE Arca plan near-24-hour weekday schedules. A model by Kellogg and Carnegie Mellon researchers found that market closures can benefit large institutional traders by concentrating liquidity and reducing the price impact of big trades.
The counterintuitive lesson is that more access is not always more efficiency. In busy markets, only a brief closure may be needed, but thinner markets could suffer if activity gets spread too widely. The future of trading may therefore collide with the old discipline of synchronized liquidity.
Source: Kellogg Insight · September 1, 2026