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This article discusses the growing trend of 24-hour or out-of-hours trading, particularly in the U.S. market,and its potential implications for European stock exchanges and investors.

Here’s a breakdown of the key points:

The U.S. Trend:

Growing Appetite: There’s a significant and growing demand for extended trading hours in the U.S.
Cboe’s Move: Cboe Global Markets is planning to offer 24-hour trading for U.S. equities five days a week on its Cboe EDGX Equities Exchange.
NYSE and Nasdaq: The New York Stock Exchange has applied to extend trading to 22 hours a day, and Nasdaq to 24 hours.
Robinhood’s Influence: Platforms like Robinhood are already generating significant U.S. market activity overnight, influencing opening prices. Robinhood’s CEO sees 24-hour markets as a future necessity.

European Response and Challenges:

Lagging Retail Activity: Retail activity in European markets significantly lags behind the U.S.
Cboe Europe’s Monitoring: Cboe Europe is closely watching the U.S.trend and the desire of global retail investors to engage more with European cash equity markets.
Cboe Europe’s Initiatives: Cboe launched a service to cut trading charges across 18 European markets to encourage retail participation.
London Stock Exchange Group (LSEG): LSEG is reportedly exploring the technological and regulatory aspects of extending its trading hours.
SIX Group (Swiss Stock Exchange): SIX Group is examining extending trading hours for structured products (ETFs,derivatives) due to demand for U.S. stocks from retail investors.
Euronext: euronext, which operates multiple European exchanges, has not yet seen client demand for extended trading hours and doesn’t see an immediate need to review its overall trading hours due to a lack of consensus among industry participants.
Deutsche Börse (frankfurt Stock Exchange): Deutsche Börse echoes Euronext, stating they would extend hours if there was demand, but currently, there isn’t. Investor Preference: Other European exchanges and brokers suggest European investors are more interested in trading U.S.equities and linked products after hours, rather than a renewed interest in european companies.

Impact on Retail Investors and Market Attractiveness:

Positive for Retail Involvement: Hargreaves Lansdown believes extended trading hours are positive for retail investor involvement, catering to smartphone-based trading.
Limited Impact on Company Attractiveness: However, they doubt it will significantly improve the attractiveness of listed companies to investors or influence companies’ decisions on where to list.
Risks of Extended Hours: Extended trading hours carry risks, including sharp price moves due to lower liquidity, which can lead to margin calls for investors.
low Retail Investment in the UK: The article highlights weak levels of retail investment in UK markets, with Brits having the lowest percentage of their wealth in investments among G7 countries.Other European nations also lag behind the U.S. in this regard.Overall Sentiment:

The article suggests a divergence between the U.S. and europe regarding extended trading hours. while the U.S. is actively pursuing and implementing 24-hour trading, driven by retail demand and platform innovation, european exchanges are more cautious, waiting for clear client demand and industry consensus. The focus for European retail investors seems to be on accessing U.S. markets during extended hours rather than a surge in interest for European equities during those times. The article also touches upon the broader issue of lower retail investment in European markets compared to the U.S.