Anna Hartz
As financial markets become more global, investors increasingly want to trade when major events happen rather than wait for the next morning.
Stock exchanges are now looking at longer trading hours as they compete for business and try to keep up with changing investor habits.
A 30-minute break only
The London Stock Exchange has announced plans for a new market that would operate almost around the clock, reports El Economista. Called LSE24, the digital trading platform would allow investors to trade from Monday to Friday with only a 30-minute break each day to update and record market data before the next session begins.
A trial version of LSE24 could be available by the end of this year, while full operations are expected to begin in the first half of 2027. The new market would run alongside the traditional London Stock Exchange, but trading would take place separately.
The London Stock Exchange said the plan could improve liquidity, make trading more efficient and attract more investors. It also believes the move could help London remain a major global financial center.
Longer trading hours would give investors more freedom to react to major events as they happen. They could respond to geopolitical developments, economic news and sudden market movements without having to wait for the regular trading session to reopen.
The system could also make it easier for investors in the United States and other parts of the world to trade UK-listed products during their own working hours.
An international center
The new system is expected to first focus on exchange-traded products, or ETPs. London is already an important international center for these products, which give investors exposure to markets around the world.
Subject to regulatory approval, LSE24 would also use the London Stock Exchange Group’s Digital Securities Depository. The system is being developed to support the digital issuance, settlement and administration of securities.
London is not alone in considering longer trading hours. Nasdaq and Cboe have also proposed markets that could operate around the clock. Hong Kong is reportedly looking at extending its trading hours as well.
The move comes as the London Stock Exchange faces growing pressure to remain competitive. The exchange has struggled to attract new companies, while takeovers have reduced the number of businesses listed in London. It also continues to face relatively low investment from major UK institutions, including pension funds.
