London Stock Exchange Thinking about 24-hour trading to improve the competitiveness of the UK market
According to a report in the Financial Times, the London Stock Exchange Group (LSEG) is exploring plans to expand or potentially conduct 24-hour trading as part of an effort to revitalize the UK market and compete more effectively with the global exchanges.
Currently, the trading hours of London-listed stocks are from 8 a.m. to 4.30 p.m., but LSEG is now reviewing options, including trading around the clock or extensions until evening. The move will follow a similar discussion in the United States, after the New York Stock Exchange proposed a huge expansion of its own trading window last year.
A source familiar with the matter told FT that LSEG “absolutely looked at it” and engaged in “important business, policy and regulatory discussions.” Key areas of review include technical infrastructure, liquidity impact, and impact on companies with dual listings.
The review is due to increasing pressure to make the UK stock market more attractive to both domestic and international investors. Recently, many high-profile companies have moved or considered moving their listing to New York, citing stronger liquidity, higher valuations and a broader investor base.
These include: Wise, an online payment platform, which recently proposed a dual list in the United States and the United Kingdom. Ashtead announced its listing move last year, while Flutter Entertainment and CRH chose to move its listing entirely to the U.S.
Wise’s proposal has sparked backlash from some investors, including co-founder Taavet Hinrikus. He believes these governance changes have been “buried in the proposal.”
Smart CEO Kristo Käärmann refuted these claims in his blog post and insisted that the company’s intentions were “clear and transparent”.
All-weather trading has become the norm for the cryptocurrency market and increasingly access to retail investors through platforms such as Robinhood, which offer after-hours transactions. However, traditional stock exchanges are still subject to the limitations of the heritage system, time zones and settlement structures.
The New York Stock Exchange has petitioned U.S. regulators to extend its trading hours from the current 9:30 a.m. to 4 p.m. ET to ambitious 1:30 AM to 11:30 PM. Supporters say the shift will benefit investors around the world and the West Coast, while critics warn of operational complications, reduce clearing windows and challenges to fund managers.
In London, brokers and asset managers have also attracted attention, who believe that extending hours will require a lot of technical and personnel investment and may undermine the way open-ended funds are priced, as they usually calculate value in the market.
LSEG’s move forms part of a broader reassessment of the UK’s financial regulatory environment. Prime Minister Rachel Reeves said it had put forward a more growing stance and called for bold reforms to prevent the traditional Chinese tape festival from “suffering” innovation.
Reeves last week called the regulations “a boot on the neck of the UK business” and vowed to support changes that would help stimulate capital markets, encourage listings and retain high-growth companies.
Regardless of the fact that 24-hour transactions become a reality in London, the fact is being considered, suggesting an increasingly urgent need to redefine the global financial relevance of London.
London Stock Exchange Group declined to comment.
