Can 24-Hour Trading Revive London's Market Mojo?
The London Stock Exchange is flirting with the idea of 24-hour trading, joining a global trend pioneered by U.S. exchanges and crypto bros.
THE GIST
As small investors demand round-the-clock access, the LSE is weighing whether a sleepless market might inject new life into Britain’s sluggish equities scene, or just exhaust what little volume remains.
WHAT HAPPENED
The London Stock Exchange Group (LSEG), operator of Britain’s flagship bourse, has confirmed it’s exploring 24-hour trading.
The move mirrors recent expansions from the NYSE, Nasdaq, and Cboe Global Markets, all chasing the Robinhood-fueled surge in after-hours enthusiasm. U.S. regulators have already greenlit the 24X National Exchange, set to run 23-hour weekday sessions. Nasdaq is gunning for full 24/7 by 2026.
Across the Atlantic, however, European exchanges are more hesitant. Cboe Europe has slashed fees to woo retail traders. SIX, Euronext, and Deutsche Börse are monitoring demand but remain cautious. The LSE, still haunted by a string of high-profile corporate departures, is considering the technical, regulatory, and market structure implications of staying open all night. Retail-friendly brokers like Hargreaves Lansdown say the plan might appeal to smartphone-tapping punters but won’t exactly lure Apple or NVIDIA to list in London.
Meanwhile, skeptics warn that extended trading in thin overnight markets risks turning orderly exchanges into ghost towns of volatility and margin calls.
WHY IT MATTERS
The pitch for 24-hour trading is seductive: Make markets as accessible as WhatsApp, and maybe the TikTok generation will finally buy some FTSE 100. But beneath the fintech sparkle lies a harsh truth: Longer hours won’t fix Europe’s chronic retail engagement problem or make London cool again.
Let’s start with liquidity. Right now, off-hours trading is a rounding error in the U.S., just 0.1% of equity volume. Extending the day doesn’t conjure new buyers or sellers; it just spreads the same tepid soup thinner across more hours. For exchanges like the LSE, where liquidity already pools around opening and closing auctions, overnight trading could mean wider spreads, price staleness, and a spike in flash-crash risk.
Then there’s infrastructure. Managing 24/7 markets is not just about flicking a switch; it’s about reengineering clearing, settlement, risk models, and compliance oversight. LSEG may have the tech muscle, especially post-Refinitiv acquisition, but regulators like the FCA aren’t known for their late-night risk appetite. And don’t forget the optics. London’s capital markets have been bleeding prestige. Flutter, CRH, Arm, Ashtead, companies are ditching the UK for deeper liquidity and juicier multiples in New York.
In Q1 alone, U.S. IPOs raised £8.9 billion; London managed a paltry £75 million. A few extra hours of trading won’t fix that exodus.
The real problem isn’t when you trade, it’s why. UK retail investors have the lowest equity exposure in the G7, and platforms like Robinhood have trained a new cohort to chase meme stocks, not dividend aristocrats. The cultural gap between WallStreetBets and the London bourse is a canyon. Still, there’s momentum. Cryptocurrencies normalized the idea that markets don’t sleep.
AI-driven trading bots are happy to operate in the wee hours. Global investors in Asia or the Middle East want access on their time, not Greenwich Mean Time. For hedge funds and arbitrage desks, that asynchronous world is an opportunity buffet.
If LSEG doesn’t build the pipes, someone else will.
WHAT'S NEXT
Ironically, the decision to go 24/7 won’t come overnight. Expect months of consultation with brokers, asset managers, and regulators and perhaps a few trial runs. If it launches, the first phase may mimic U.S. moves, with extended hours five days a week and key ETFs or blue chips listed in a “twilight” window.
But let’s be honest, this isn’t about matching Robinhood’s vibe. It’s about survival. If London can’t reinvent its capital markets and woo the next generation of traders and tech listings, it risks becoming a historic footnote. In a world where the sun never sets on trading screens, the City needs to decide whether it wants to be part of the future or just complain about Wall Street’s unfair advantages.
Because markets, it turns out, don’t care what time it is.
© MOBY TECHNOLOGIES
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