Could 24-hour trading revive the London Stock Exchange? We get two market experts to go head to head in this week’s Debate.
The FTSE 100 may be at record highs, but don’t be fooled. This isn’t a comeback – it’s a momentary cheer on a slow downward spiral. Beneath the surface, London’s stock market is in a deep bout of depression, with more companies leaving than joining and a steady stream heading for the US every week.
While not a fix-all, 24-hour trading is exactly the kind of innovative action we need to stay competitive and keep our best businesses listed in London.
Traditional trading hours are no longer fit for purpose. Crypto trades 24/7, US exchanges are moving towards 22-hour days and a new generation of investors – shaped by constant access through the digital economy – expects the same from global stock exchanges. If the London Stock Exchange wants to reclaim influence and shed its status as a laggard, it must lead with bold, forward-looking reform.
Some argue the tech investment is too steep, or that overnight volumes are too thin. But that’s a short-term view. These concerns are valid and should be factored into a phased rollout but the long-term rewards far outweigh the risks. Extending trading hours could transform London into a global hub for round-the-clock equities trading, attracting fresh capital and relevance.
But 24-hour trading alone won’t solve everything. The government must step up too. It could start by scrapping stamp duty on shares, incentivising long-term UK stock ownership through targeted tax breaks and scrapping the Cash ISA to get more people investing in UK companies while building long-term wealth.
We need radical moves, not half measures – or we risk falling further behind.
Michael Healy is UK MD of investment platform IG
No, the London Stock Exchange should not be open for 24-hour trading. Calls for longer trading days have grown over recent years, especially since crypto markets operate 24/7, attracting a younger, more mobile crowd, and as the UK seeks ways to make the London Stock Exchange more competitive. It’s become a regular occurrence for high-profile firms to defect to New York or dual-list.
But transitioning to a 24-hour trading regime would mean rethinking market structure and trading behavior. It would involve significant changes to technology across the financial system, as well as regulatory obstacles and hurdles to clearing and guaranteeing trades, and, of course, it would impact liquidity.