To keep national time accurately coherent with coordinated universal time, many national metrology institutes (NMIs) use two-way satellite time and frequency transfer (TWSTFT) to continuously measure the time difference with other NMIs over an international baseline. Some NMIs have ultra-stable clocks with stability better than 10− 16. However, current operational TWSTFT can only provide frequency uncertainty of 10− 15 and time uncertainty of 1 ns, which is inadequate. The uncertainty is dominated by the short-term stability and the diurnals, ie the measurement variation with a period of one day. The aim of this work is to improve the stability of operational TWSTFT systems without additional transmission, bandwidth or increase in signal power. A software-defined receiver (SDR) comprising a high-resolution correlator and successive interference cancellation associated with open-loop configuration as the TWSTFT receiver reduces the time deviation from 140 ps to 73 ps at averaging time of 1 h, and occasionally suppresses diurnals. To study the source of the diurnals, TWSTFT is performed using a 2× 2 earth station (ES) array. Consequently, some ESs sensitive to temperature variation are identified, and the diurnals are significantly reduced by employing insensitive ESs. Hence, the operational TWSTFT using the proposed SDR with insensitive ESs achieves time deviation to 41 ps at 1 h, and 80 ps for averaging times from 1 h to 20 h.