Yahoo Finance Bad luck for London's traders as Europe says no to shorter stockbroking hours
A drive to shorten stock market trading hours in London is facing opposition from a group representing European stock exchanges.
The Federation of European Securities Exchanges (FESE) said Europe's current eight-and-hour shift was fit for purpose and that any change would put the continent at a competitive disadvantage to trading venues elsewhere.
The current trading day in London is 8am to 4.30pm, meaning that business in the City and in Europe covers the Asian market close as well as the opening bell on Wall Street.
Those in favour of shorter trading hours argue that it would improve traders’ mental health and boost liquidity by concentrating transactions. The Association for Financial Markets in Europe and the Investment Association have also said that a long-hours culture make it hard for working parents, discouraging diversity.
Without the support of European exchanges, however, it's likely that the goal of shorter hours in London would be hard to achieve.
The FESE's secretary-general Rainer Riess said the push for a shorter day was a “very UK-centric debate” and one not seen to the same extent in Europe. He said there needed to be a greater focus on the use of shifts as a way to improve work-life balance.
Mr Riess told the FT: “If you shorten the hours, there will be a threat to liquidity in terms of transparency. Exchanges have to do what is best for price formation and overall stability and resilience. Lifestyles are changing and people want to trade before and after work.”
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