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Navigating around the clock news cycles requires real time risk management

By providing a platform for continuous trading and risk management, futures markets are ensuring that investors can manage their portfolios around the clock, writes Paul Woolman, global head of equity index products, CME Group.
By Claudia Preece

By providing a platform for continuous trading and risk management, futures markets are ensuring that investors can manage their portfolios around the clock, writes Paul Woolman, global head of equity index products, CME Group.

In today’s fast-paced and unpredictable world, the non-stop news cycle is a constant reality. Volatility is pushing investors to trade wherever the market is open, and the futures market is stepping up to meet this demand.

Against a backdrop of economic and geopolitical uncertainties, the global financial community is witnessing a shift in how investors approach risk and seize opportunities. The traditional stock market trading day – 9.30am to 4pm ET – is evolving into a new standard: around-the-clock trading and risk management. 

Consider an investor who is alerted to a significant policy change or economic event outside of regular US trading hours. Historically, they would have had to wait until the markets reopened to act. Today, the scenario is different.  

Real-time reactions to market events  

The importance of real-time risk management has never been more evident than in recent market-moving events. In the run-up to 2 April, traders were already increasing their usage of futures to manage tariff risks. However, when significant changes to trade policy were announced on 2 April, after the closure of the US equity markets, global investors turned to the equity index futures market to react immediately. 

Out-of-hours trading surged in the aftermath of the announcement. One million S&P 500 futures contracts (which includes E-mini and micro products) were traded out of hours, a 125% increase on the 2025 average. Nasdaq futures saw a similar jump, up 82% with over a million contracts traded. Volumes in Dow Jones and Russell 2000 futures were at least twice the daily average in the three trading days after 2 April. 

Overnight trading peaked on 7 April with Dow futures trading more than quadrupling the daily average. S&P 500 contracts were likewise up nearly four times (288%) to 2.2 million and Nasdaq futures up 183% with 1.6 million contracts changing hands. Volumes in Dow Jones and Russell 2000 futures were at least twice the daily average in the three trading days after 2 April. 

Across both futures and options, CME Group saw all-time record volume on 11 April, with 5.3 million contracts traded in non-US hours. In total, four of the ten largest overnight trading days occurred in the aftermath of the tariff announcement. Volatility has also spurred drastic growth in the overnight index options market at the company. Year-to-date, non-US hours average daily volume is at 282,000 contracts, a 13% year-over-year increase, with 835,000 contracts traded on 4 April alone. 

Why futures support all-hours trading  

Futures markets are open for 23 hours a day, six days a week, making them the first port of call for investors looking to trade or discover prices out-of-hours. This is particularly crucial when major news happens in the Asian or European market day.  

“Listed futures serve as a crucial tool, allowing investors to manage risk ahead of the official US trading session,” said Imanol Urquizu, head of derivatives at Santander Asset Management.   

“Anyone who has traded during a US election night or woken up to negative news from Asia knows the experience – traders react in real time through listed S&P futures.” 

Navigating overnight market moves 

Tariffs are not the only drivers of increased overnight activity. Traders are also leveraging futures to take positions around quarterly and yearly company results. For example, when Nvidia released its earnings report in February, S&P 500 futures trading volumes jumped 43% between 4pm and 5pm ET, compared to the 2024 average. Nasdaq futures volume also increased by 107%. 

Futures markets serve as a natural home for investors seeking immediacy. The market is supported by robust demand from international investors, who keep markets liquid and trading active while the US is asleep.   

“Global investor demand to trade the US market has enabled major investment banks to provide competitive pricing and deep liquidity well beyond traditional trading hours,” said Urquizu.

Market-moving news is coming out every hour, whether it’s a surprise geopolitical event or pre/post-market financial results. By providing a platform for continuous trading and risk management, futures markets are ensuring that investors can manage their portfolios around the clock.

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