London Stock Exchange Explores 24-Hour Trading

Push for Global Competitiveness Amidst Tech Advancements

The London Stock Exchange Group (LSEG) is reportedly examining the feasibility of introducing round-the-clock trading. This consideration comes as the UK market faces pressure to enhance its appeal and competitiveness for international investors.

Examining Extended Trading Hours

Sources familiar with the matter indicate that LSEG is actively investigating the practicalities of extending its trading sessions. Discussions are underway regarding commercial, policy, and regulatory aspects of such a significant shift.

One insider stated that the group is “absolutely looking at it, whether it means 24-hour trading or extended trading.” This move aligns with the reality of markets like cryptocurrencies, which operate continuously, and the growing trend of after-hours trading on platforms like Robinhood.

Global Trend in Market Operations

LSEG’s contemplation of extended hours mirrors similar initiatives by other major exchanges worldwide. The New York Stock Exchange, for example, has petitioned US financial regulators to broaden its trading window beyond the current 9:30 am to 4 pm schedule.

The potential benefits of extended trading hours include catering to investors in different time zones, particularly beneficial for those on the US West Coast. However, the move could present challenges for fund managers who typically calculate daily net asset values at the close of trading.

Addressing Market Competitiveness

This exploration into extended trading hours is part of a broader strategy to bolster the UK’s financial market. Several high-profile companies have recently opted for listings in the US, citing better liquidity, higher valuations, and access to a larger investor base.

The online payments firm Wise, for instance, announced plans for a dual listing in the US and the UK. This follows similar decisions by companies like Flutter Entertainment and CRH, which have moved their primary listings to American exchanges.

The government is also actively reviewing regulations to stimulate economic growth. Chancellor **Rachel Reeves** recently described existing rules and red tape as a “boot on the neck” of businesses, potentially stifling innovation across the UK.

As of the first quarter of 2024, the total market capitalization of companies listed on the London Stock Exchange stood at approximately £3.1 trillion, underscoring its significance but also highlighting the need for ongoing adaptation (London Stock Exchange Group).

The London Stock Exchange Group has declined to comment on these reports.