London Stock Exchange Group considers launch of 24-hour trading

The London Stock Exchange Group (LSEG) is exploring the feasibility of introducing 24-hour trading to meet growing retail investor demand and remain competitive in a rapidly evolving global financial landscape. This initiative, reported by multiple sources including the Financial Times and Bloomberg on July 20, 2025, reflects broader trends in the financial industry, where traditional stock exchanges are under pressure to extend trading hours in response to technological advancements and shifting investor behavior. Below is a detailed analysis of this development, as well as its motivations, challenges, and implications, presented formally and structured per your preferences.

Context and Motivations

1. Rising Demand from Retail Investors:
   • The surge in retail investor participation, particularly among younger generations using mobile trading platforms, has driven demand for extended trading hours. These investors, often active outside traditional market hours (8:00 AM to 4:30 PM GMT for the London Stock Exchange), seek greater flexibility to trade at their convenience.
   • The success of 24/7 cryptocurrency markets, which allow continuous trading, has set a precedent that traditional equity markets are now looking to emulate. This is particularly relevant as platforms like Robinhood in the U.S. have popularized after-hours trading, making conventional market hours seem restrictive.
2. Global Competition Among Exchanges:
   • Major U.S. exchanges, such as the New York Stock Exchange (NYSE), Nasdaq, and Cboe Global Markets, have recently applied to extend their trading hours, signaling a global race to capture investor demand across time zones.
   • The LSEG aims to revitalize interest in UK-listed shares, which have faced challenges including shrinking trading volumes and a lack of new listings post-Brexit. A 24-hour trading platform could attract overseas investors and younger traders, boosting the appeal of the London market.
3. Strategic Goals of LSEG:
   • Under CEO David Schwimmer, LSEG has been transforming into a data and technology-focused entity, with the stock exchange now contributing only 3% of its revenue following the $27 billion acquisition of Refinitiv. Extending trading hours aligns with this modernization strategy to enhance market activity and competitiveness.
   • The initiative is part of broader discussions about new products and services, positioning LSEG to align with global trends and mirror the operational model of cryptocurrency markets.

Key Considerations and Challenges

1. Regulatory and Policy Hurdles:
   • Implementing 24-hour trading requires significant regulatory approval, involving changes to market operations and oversight. LSEG is engaged in “important commercial, policy, and regulatory discussions” to assess the feasibility of this shift.
   • Concerns include maintaining market integrity, ensuring fair pricing, and managing liquidity, which is currently concentrated during the opening and closing auctions of the trading day. Extended hours could lead to thinner liquidity and higher volatility, posing risks to investors.
2. Technological Upgrades:
   • LSEG evaluates the technological infrastructure needed to support continuous trading, including upgrades to trading platforms and settlement systems. This is critical to ensure seamless operations and prevent disruptions during non-traditional hours.
   • The experience of cryptocurrency markets, which rely on robust digital infrastructure for 24/7 trading, provides a potential framework, but adapting this to traditional equities involves complex system integration.
3. Impact on Market Participants:
   • Traditional fund managers, who rely on closing prices to set fund valuations, may resist 24-hour trading due to the operational challenges of monitoring markets around the clock. This could complicate pricing mechanisms for funds managing trillions of pounds.
   • Companies with dual listings (e.g., in London and New York) may face challenges in managing liquidity and price consistency across markets with differing trading hours.
4. Precedents and Global Trends:
   • The U.S. has seen initiatives like the 24X National Exchange, set to launch in the second half of 2025 with trading from 4:00 AM to 7:00 PM ET, and potentially expanding to near-continuous hours. This underscores the global push toward extended trading windows.
   • Platforms like Blue Ocean and brokerages like Charles Schwab and Robinhood already offer limited after-hours trading, providing a model for LSEG to consider and highlighting competitive pressures.

Potential Implications

1. Market Competitiveness:
   • A successful launch of 24-hour trading could enhance the London Stock Exchange’s position as a leading global market, particularly as it competes with New York and European exchanges post-Brexit. It could attract new listings and increase trading volumes, addressing the current crisis of declining activity.
   • Aligning with the operational model of cryptocurrency markets may draw in tech-savvy investors and position London as a forward-thinking financial hub.
2. Economic and Investor Impact:
   • Extended hours could democratize access to trading, enabling retail investors across different time zones to participate more actively. This could increase market participation and liquidity, but it may also heighten volatility during off-peak hours.
   • The initiative could influence other Western markets to follow suit, potentially reshaping global equity trading practices to mirror the 24/7 nature of crypto markets.
3. Challenges to Traditional Models:
   • The shift may disrupt traditional market operations, particularly the reliance on concentrated liquidity during opening and closing auctions. This could necessitate new risk management strategies for investors and market operators.
   • Resistance from institutional investors and regulatory bodies could delay or modify the implementation, requiring careful balancing of innovation and stability.

Current Status

As of July 20, 2025, LSEG’s exploration of 24-hour trading is in the discussion phase, with no official confirmation or timeline for implementation. The Financial Times reported that LSEG is “absolutely looking at it,” indicating serious consideration but no finalized plans. The absence of immediate cryptocurrency market impact suggests a cautious approach, with stakeholders analyzing regulatory, technological, and commercial implications.

Conclusion

The LSEG’s consideration of 24-hour trading reflects a strategic response to the evolving demands of retail investors and the competitive pressures from global exchanges and cryptocurrency markets. While the initiative holds potential to revitalize the London market and attract new participants, it faces significant regulatory, technological, and operational challenges. Stakeholders should monitor LSEG’s progress, particularly its regulatory discussions and technological preparations, as these will shape the feasibility and impact of this transformative shift. For further details, refer to sources such as the Financial Times, Bloomberg, or LSEG’s official communications.