The London Stock Exchange is analyzing the possibility of 24-hour trading in response to demand from investors who wish to trade outside of conventional trading hours.
The organization is evaluating the technological and regulatory aspects involved in a decision like this, which responds to the increase in requests from young investors.
According to the Financial Times, “this measure reflects a growing trend toward modernization driven by younger investors, who prefer to trade via their smartphones.”
According to the LSEG proposal, practical aspects are being considered, including “the technology required to maintain these continuous operations and regulatory implications. In addition, the effects on dual-listed companies and the potential impact on liquidity, which is currently concentrated in the opening and closing auctions of the trading day, will be considered.”
The request is related to the request by US exchanges — the New York Stock Exchange, Nasdaq, and CBOE Global Markets — to the US Securities and Exchange Commission to expand online trading with the approval of a 24-hour exchange called 24X.
For its part, “the Federation of European Stock Exchanges stated that while longer trading windows may attract retail investment, it is still uncertain whether these models will prove sustainable or beneficial in the long term.”
M.Pino
Source: capital.es
(Reference image source: Francais a Londres on Unsplash)
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