Hello,

The only thing better than watching markets for 8 hours a day, is watching markets for 24 hours a day. That dream could soon be a reality according to reports that the London Stock Exchange Group (LSEG) is exploring the possibility of introducing 24-hour trading.

 

This story is emblematic of the recent industry shift towards retail investing which first began during the covid lockdown, when the meme-stock craze made use of idle cash and even idler minds. According to the World Economic Forum, the proportion of global assets under management attributable to retail investing is expected to be 61% in 2030, having been 45% in 2014.

 

LSEG may be seeking to capitalise on this trend, as it fights to hold onto its constituents. A number of its largest listings have recently moved across the Atlantic, drawn by access to the largest capital markets in the world. A move to 24-hour trading would likely attract more investors and improve liquidity in the UK market. However, stock level implications should also be considered. A fall in trading volume during off-peak hours may lead to greater volatility in prices. This may raise concerns for investors’ portfolios, as well as their sleep and sanity.

 

As always, if you wish to discuss anything in further detail, please do get in touch.