LSEG Considers 24-Hour Trading to Attract Small Investors

London Stock Exchange Group (LSEG) is considering extending its trading hours to 24 hours a day, in response to the growing demand from small investors. This move comes as other exchanges around the world are also exploring similar changes to their trading schedules.

LSEG is currently evaluating the feasibility of implementing 24-hour trading, including the necessary technological upgrades and regulatory implications. The exchange is also considering the potential impact on dual-listed companies and market liquidity.

The proposal to extend trading hours is part of a broader discussion on potential new products and services. LSEG is also looking into the possibility of extending trading hours to cater to the needs of "night owl" traders and to attract more overseas investors and young traders to the UK market.

However, any move to extend trading hours may face opposition from traditional fund managers, who rely on the closing price of stocks to value their funds. The shift to 24-hour trading could make pricing more difficult and require fund managers to monitor the market around the clock.

In addition to LSEG, other exchanges are also considering extending their trading hours. In March, Nasdaq, the second-largest stock exchange in the US, applied to regulators to extend its trading hours to 24 hours a day, five days a week. The exchange cited the growing interest from Asian investors as a reason for the proposed change.

In Indonesia, the Jakarta Stock Exchange is also considering extending its trading hours to increase market activity. The exchange is currently in the early stages of discussing the proposal with market participants.

In the US, the Chicago Board Options Exchange (CBOE) announced in February that it plans to extend the trading hours of its stock exchange to 24 hours a day, five days a week, subject to regulatory approval.

In October last year, the New York Stock Exchange announced plans to extend the trading hours of its electronic exchange, NYSE Arca, to 22 hours a day, subject to regulatory approval.

In Japan, the Tokyo Stock Exchange extended its trading hours by 30 minutes in November last year, in an effort to improve market efficiency and competitiveness. The exchange's trading hours now total 5.5 hours a day.