London Stock Exchange Plans Near 24-Hour Trading, Experts Wary

The London Stock Exchange (LSE) is preparing to significantly extend trading hours, aiming to offer nearly 24-hour access to securities. This initiative, reported by the Financial Times, involves establishing a separate platform to accommodate growing demand, particularly from retail investors.

Starting next year, the new platform is expected to facilitate trading of exchange-traded funds (ETFs) linked to British and US assets. These extended hours will run from 5 p.m. to 7:50 a.m. British time, with a brief interruption for closing price calculations. The LSE's existing trading hours, from 8 a.m. to 4:30 p.m., will remain unaffected.

This move by the LSE aligns with a broader international trend toward longer trading sessions. The rise of cryptocurrencies, which trade continuously on specialized platforms, has intensified pressure on traditional exchanges to expand their operating hours. Competitors like Nasdaq are already moving in this direction, with plans for a 23-hour trading day, and the New York Stock Exchange has received approval for a 22-hour trading day.

However, the expansion of trading hours is not without its critics. Stock market professionals have voiced concerns, warning that extended overnight trading could lead to greater price fluctuations. This increased volatility is attributed to potentially lower trading volumes during the night, which can amplify market movements.

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The LSE is responding to increased demand, especially from private investors.