The London Stock Exchange Group is considering whether to extend or even shift to 24-hour trading, as pressure mounts on traditional bourses to modernise in response to growing demand from retail investors and the global rise of crypto-style markets.
The group is actively assessing the feasibility of longer trading hours, according to a Financial Times report on Sunday.
Discussions include both commercial and regulatory aspects, as well as the technological infrastructure that would be required to support continuous trading.
The potential move comes as global exchanges face increased competition and shifting investor behaviour. The 24/7 nature of cryptocurrency markets, which attract significant trading volumes across time zones, has prompted traditional exchanges to re-evaluate long-standing trading windows.
In particular, younger investors accustomed to real-time access via smartphones are pushing for more flexibility.
Equities May Be a Small Earner, But LSE’s Role Remains Crucial
While the London Stock Exchange earns most of its revenue from selling financial data, its equities business still plays a symbolic and structural role in the City.
Despite contributing just 2.7% of LSEG’s first-quarter revenue this year, the exchange remains a key gateway for international capital flowing into British companies. Its current hours run from 8am to 4.30pm.
As part of the internal review, the group is examining a range of factors. These include how extended hours would impact trading liquidity, which is currently concentrated during the opening and closing auctions, as well as how dual-listed companies might be affected. Regulatory implications and cost burdens are also under scrutiny.
US Exchanges Push for Longer Hours Amid Global Trading Shift
Other global players are moving in a similar direction. In the US, the New York Stock Exchange, Nasdaq and Cboe Global Markets have each submitted applications to the SEC to extend their hours. These three account for nearly 40% of US equity trading.
Their efforts follow the provisional approval of 24X, a new exchange designed to operate around the clock. However, final approval for overnight trading has been delayed as regulators seek clarity on wider market impacts.
Liquidity Concerns Keep Fund Managers on the Sidelines Despite 24/7 Push
Retail investors have embraced after-hours trading, especially on platforms like Robinhood. However, institutional investors remain cautious. Fund managers have voiced concerns about higher operational costs. In addition, they worry about reduced liquidity and weaker price discovery outside regular trading hours.
In the US, debate over trading hours has persisted for years, especially among West Coast investors who must contend with a 1pm market close. By contrast, Asia’s active trading communities and time zone alignment with US overnight hours give round-the-clock trading models greater relevance.
To enhance its global edge after Brexit, London is considering a crypto-inspired trading approach, which could represent a major change. However, its adoption hinges on whether the advantages surpass the regulatory and operational challenges.
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