London firms’ bid to slash trading hours meets stiff opposition from European exchanges
LONDON (UK) – European stock exchanges on Wednesday said shorter hours would not be good for investors or stock markets. This dashes the hopes of banks and investment companies in London of slashing 90 minutes from the trading day.
According to the Federation of European Securities Exchanges (FESE), shorter hours would be a move in the wrong direction. At present, the trading day across Europe is 0900-1730 continental European time, which is longer than Asian stock exchanges or Wall Street.
FESE said that shortening of time could put Europe at a competitive disadvantage to rival trading venues.
When the London Stock Exchange, which is not associated with FESE, held a public consultation earlier this year, it gauged that there was support for slashing the trading day by 90 minutes. This they found could improve mental wellbeing and woo more women to the trading platform.
As most banks have pan-European trading desks, it would be a herculean task to implement shorter hours without a harmonised approach.
As the UK has quit the European Union, London will be wary of putting itself at any competitive disadvantage to rival exchanges in the continent.
The duration of the trading hours do not have a negative impact on working style of stock markets, said the FESE, stating that extra shifts have to be implemented.
On Tuesday, UK’s Investment Association and the Association for Financial Markets in Europe strengthened their demand for slashing trading hours.
FESE vice-president Euronext does not support the ‘London proposal.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field