The London Stock Exchange Group (LSEG) may become the first trading venue to pave the way for 24-hour trading in Europe and the UK.
First reported by the FT on Sunday, a source familiar with the matter has suggested to the publication that LSEG is exploring a shift to extended hours to address an increasing demand for longer trading windows from small investors trading on smartphones outside of the current 8am to 4:30pm market hours.
The group is believed to be considering the technological and regulatory implications of the move, as part of further discussions surrounding the creation of new products and services.
LSEG declined to comment when approached by The TRADE.
A shift to either extended trading hours or 24-hour trading would make LSEG the first UK or European trading venue to move to this model and follows a marked uptake in interest in the US, following the rise of crypto and retail participation.
Over the past few months, platforms such as OTC Markets and Blue Ocean Technologies have announced partnerships expanding their out of hours trading offering.
Read more – LiquidityBook leverages Blue Ocean ATS to extend overnight trading
Similarly, in October 2024, the New York Stock Exchange (NYSE) proposed plans to extend weekday US equities trading to 22 hours a day, while 24X National Exchange received approval from the US Securities and Exchange Commission (SEC) for near-continuous sessions for equities trading.
Cboe Global Markets also revealed plans in February to expand its trading hours for US equities, moving to a 24/5 model, subject to regulatory approvals. This was followed by news revealed in March that Nasdaq had begun engaging with regulators to enable 24/5 trading on the Nasdaq Stock Market.
Read more – An un-unified approach to expanding equities trading hours
The question of whether Europe should follow its overseas counterparts and move to extended trading hours has gained considerable traction in recent months, yet overall sentiment appears to be uncertain.
The role of retail has been central to the debate, with many in the industry noting a marked difference in volumes in the UK and Europe than those seen in the US.
“Retail is probably around 5% of the market in Europe, compared to 20–25% in the US,” said Chris Collins, senior trader at Lazard Asset Management, speaking to The TRADE.
“There’s just not the same scale or structure of retail activity here. So, building policy around the US model risks missing the mark.”
Read more – Rethinking market hours: Why Europe should follow behaviour, not headlines
Additionally, Europe’s primary markets operate the longest continuous equity trading day in the world, with most of them running at eight and a half hours. However, many in the UK and Europe believe that aligning primary hours with natural liquidity formation instead of extending hours instead will bring the most benefits.
Collins said: “It’s easy to assume that 24-hour access equals round-the-clock activity,” he says. “But when you drill into the numbers, it’s a rounding error. The real liquidity is still concentrated during the main session. The rest is mostly noise.”