As the London Stock Exchange and Euronext have both consulted their participants about their trading hours, a 90-minute shortening of the trading day is being requested jointly by the Investment Association (IA) and the Association for Financial Markets in Europe (AFME).
According to AFME, the London Stock Exchange consultation published in early June found a ‘significant majority’ of respondents supporting the arguments for a shorter trading day.
“The present long hours culture also impacts on traders’ mental health and wellbeing and has been identified as a key obstacle in recruiting and retaining more diverse talent,” the associations argue.
They write that their proposed cut would concentrate liquidity to make the markets more efficient, and point out that most traded assets change hands only near the end of the trading day – and often in the final five-minute closing auction.
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