For years, U.S. equity markets have operated on a clear set of hours: open at 9:30 a.m. Eastern, close at 4 p.m., Monday through Friday. That schedule has played a seminal role in how buy-side firms trade, allocate risk, and respond to information. For most, there hasn’t been another option.
But markets don’t stop moving when the bell rings. The world keeps turning, news breaks overnight, and geopolitical events unfold in real time. And while other asset classes – like FX and crypto – have long offered 24-hour access, U.S. equities have remained tethered to the clock.
As we’ve all noticed, that’s starting to change. A growing number of market participants are recognizing that overnight trading is no longer a novelty. It’s becoming an essential tool for managing risk, capturing opportunities, and staying responsive to an increasingly global and fast-moving environment. Recent announcements from NYSE and Nasdaq, as well as the SEC’s approval of 24 Exchange, have underscored this momentum.
A Tipping Point for Overnight Trading
Historically, the overnight market in U.S. equities has been limited in scope, with occasional trades by hedge funds or other institutional players placed on a call-in basis with selected market makers, typically at wider spreads favoring the principal liquidity provider. There wasn’t a true, structured overnight ecosystem, which limited buy-side engagement. But the cycle of market evolution – where early infrastructure and liquidity attract the initial adopters, followed by broader institutional participation – is not new. It’s a pattern our industry has seen time and again. The first electronic trading platforms – Instinet, Island ECN, Archipelago – are a good example. First came the early movers, then market makers, then the buy side – driven by the need for better access, more liquidity, and best execution.
In the case of overnight trading, that tipping point is arriving. Liquidity is growing. Market structure is evolving. The infrastructure to support institutional access is taking shape. And a growing number of hedge funds, asset managers, and RIAs are asking how they can get involved.
Connecting the Dots: LiquidityBook, Blue Ocean, and CAPIS
That’s where the collaboration between LiquidityBook, Blue Ocean Technologies, and CAPIS comes in. LiquidityBook’s OMS, widely used across the buy side, now offers direct access to overnight U.S. equity trading through Blue Ocean ATS, which enables trading of U.S. National Market System stocks outside of traditional hours for users around the world. This is a straightforward, easily accessible way for the buy side to take advantage of the benefits of overnight trading today – without having to wait for the many other planned offerings in this space to come to market.
CAPIS, as the introducing broker, helps connect buy-side clients to this market in a way that’s simple, familiar, and aligned with their existing workflows. There’s no separate platform to learn, no need to call in orders – clients can enter trades directly in their OMS, just like they would during the day. The process is fully electronic, with support for limit orders only, and offers the ability to monitor and act on overnight quotes and liquidity. And because CAPIS operates as an agency-only broker, clients can access this growing market without conflicts of interest or hidden agendas – just straightforward execution, transparency, and support.
For buy-side firms, the benefits are clear. They gain the ability to react to breaking news in real time, rather than waiting for the market to open the next morning. They can manage exposures more precisely, placing limit orders to capture overnight price moves or adjust positions around key events. And they can tap into growing liquidity that, while still evolving, is no longer negligible – multiple market makers are already providing two-sided markets on Blue Ocean, and volumes continue to build.
One unique aspect of this offering is that it’s not just about liquidity and access – it’s about confidence. With CAPIS’s experienced overnight desk monitoring order flow and resolving issues in real time, clients have the assurance that if something unexpected happens – a trading halt, a data issue, a question about a symbol – there’s someone on the other end of the line who can help. That level of hands-on support is something many larger brokers simply don’t offer, especially outside of regular hours.
Of course, this is still an early-stage market. As mentioned, other exchanges and ATSs have announced plans to offer 24/5 or even 24/7 trading, but regulatory hurdles and clearing requirements could mean a long wait before they go live. Blue Ocean is already leading the overnight charge, offering real liquidity and a functioning ecosystem today. The opportunity is here for those willing to take it. We’re pleased to play a role in helping firms take advantage.
As always, it’s the early movers who stand to benefit most. The buy side has been waiting for a way in. Now, with the right partners and the right infrastructure, they can access overnight U.S. equities in a way that makes sense – efficient, familiar, and aligned with the standards of institutional trading. Ultimately, it’s a path to staying ahead of the curve and ensuring clients don’t miss opportunities simply because they happen outside of a six-and-a-half-hour window.
The future of U.S. equity trading is 24/5. And thanks to the groundwork that’s been laid, it’s no longer a question of if. It’s a question of how quickly the buy side can act.
For Institutional Investor Use Only.
