The Stock Exchange of London and other trading venues are being petitioned by the two largest financial entities in European financial market markets, to shorten the work day by 90 minutes and to open their doors at a later hour. This suggests was an attempt to enhance liquidity and improve workers’ mental health.
The entities are in early talks and discussions with Stock Exchanges facilities to cut down the trading day for equity markets across Europe, and turn it into a 9am-4pm GMT work day. The request for changed have been headed by the Association for Financial Markets in Europe (AFME), which stand for banks, and the Investment Association. The Investment Association embody investors’ concern, and consultations with their members; the investors have requested for the change of work-day duration.
Why the London Stock Exchange and Other London Financial Facilities?
London financial markets and the London Stock Exchange are open for a longer period of time than most markets in Europe, the US and Asia. This is partly because they have the ability to extend to more time zones in one day.
Currently, financial markets are up and at it from 8am until 4.30pm, extending from both the trading hours in Hong Kong and New York. “Shortening the hours would concentrate liquidity leading to more consistent trading costs and provide greater time for traders and the market to digest corporate announcements,” the letter stated. It also claimed that the “long hour’s culture” influenced the mental health and state of traders and investors.
The regular routine in Europe’s financial markets has been gradually transitioning in recent years as trading has mainly become automated and inert investments such as exchange-traded finances have been gaining popularity. Both investors and traders in Europe are already going through a large amount of pressure as automation leads to the removal of employment and more investment banks reconsider their entire equities business in an attempt to save expenses.
What about Other Financial Markets and Entities?
Deutsche Bank and Macquarie, the Australian financial entities, are both fundamentally drawing back their London operations. HSBC is also planning to let go of 10,000 jobs, with equities trading expected to take the consequences of the forthcoming issue. CBOE Europe, which has the majority market share of the region’s equities trading facilities, allegedly claiming that it was worth debating the issue. “From our point of view, it would likely make the most sense to shorten the sessions at the beginning of the day, given this portion doesn’t overlap with the US market,” a spokesperson from CBOE Europe said.