The London Stock Exchange is seriously studying the possibility of extending trading hours to 24 hours.
In response to the strong demand from retail investors operating outside business hours, the London group is considering expanding trading hours to enhance competitiveness and meet market demands.
MAIN CONTENT
The London Stock Exchange Group (LSEG) is considering the implementation of 24-hour trading.
Demand from retail investors is the main driving force behind the extension of trading hours.
The research includes assessing technology and legal impacts.
Does the London Stock Exchange really want to open for 24-hour trading?
The CEO of the London Stock Exchange has confirmed that the study of extending trading hours is being taken very seriously with discussions on strategy, policy, and regulation.
Remarks from a senior leader in the group indicate that LSEG is conducting important commercial exchanges as well as legal impacts to assess the possibility of opening for 24-hour trading or at least extending current trading hours. This shows the goal of enhancing competitiveness and meeting the increasingly diverse needs of investors.
This consideration reflects LSEG's commitment to innovation and reasonable responsiveness to global trends, enhancing flexibility and expanding market participation opportunities for all investors.
Quoted by LSEG leadership, July 2024
Why does demand from retail investors drive the extension of trading hours?
Retail investors often have different operating hours compared to traditional business hours, requiring the market to be more flexible to serve effectively.
According to a report from the Financial Times, the increase in interest from retail investors after hours is the main reason why exchanges must compete fiercely by extending their trading hours. Flexible trading hours help optimize liquidity and facilitate more flexible investment activities, especially in the context of a constantly changing global market.
What factors are being considered by LSEG when researching the extension of trading hours?
LSEG is assessing both technology and regulatory aspects to ensure that the extension of trading hours operates smoothly and complies with the law.
Specifically, the research group is interested in the stability of the technology system, transaction security, and the impact on infrastructure as well as the regulations of the regulatory authority. The extension of hours must align with the exchange's strategy and business rationale and must be approved by stakeholders in the financial sector.
How have other exchanges around the world expanded their trading hours?
Many major global exchanges have extended trading hours to enhance the investor experience and increase global liquidity.
For example, the NASDAQ in the United States has allowed after-hours trading, contributing to an increase in trading volume and attracting a large number of retail investors, demonstrating a high level of flexibility in today's financial environment.
Exchange Current Trading Hours Extended Trading Hours Motivation London Stock Exchange Group (LSEG) 8:00 AM – 4:30 PM (GMT+7) Studying 24-hour extension Demand from retail investors, global competition NASDAQ (USA) 9:30 AM – 4:00 PM (GMT+7) 6:00 AM – 8:00 PM (after hours) Increased liquidity, serving retail investors Tokyo Stock Exchange (JPX) 8:00 AM – 3:00 PM (GMT+7) Not applying for extended hours Thorough legal and market culture considerations
Frequently Asked Questions
Will the London Stock Exchange definitely extend trading hours?
No final decision has been made, but LSEG is conducting serious research with in-depth strategic and legal discussions.
What impact does the extension of trading hours have on retail investors?
Help investors operate more flexibly, increase trading opportunities, and improve market liquidity.
What technologies need to be upgraded to support 24-hour trading?
It is essential to ensure security systems, high-speed transaction processing, and continuous stable management 24/7.
Are there risks associated with extending trading hours?
Risks include technological pressure, legal management, and the risk of market volatility due to constantly changing supply and demand.
What types of financial products will benefit the most from extended trading hours?
Large-cap stocks and Altcoins traded on platforms can take advantage of flexible trading hours to increase liquidity.
Source: https://tintucbitcoin.com/lseg-xem-xet-phat-trien-san-crypto-24h/
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