London Stock Exchange to Introduce 24/5 Trading Next Year
The LSE aims to attract retail investors and remain competitive with the launch of its new LSE 24 platform, which will initially focus on exchange-traded products.
The London Stock Exchange (LSE) is set to launch a new extended hours trading platform, LSE 24, in the first half of 2027, in an effort to re-engage retail investors and compete with overseas markets offering round-the-clock trading. The initiative also seeks to bolster a market affected by a significant number of foreign takeovers and a lack of new listings.
LSE 24 will operate independently from the Main Market, which maintains its current trading hours of 8 a.m. to 4:30 p.m. The London Stock Exchange Group states that the new platform will provide investors with enhanced flexibility to react to market events, access liquidity across different time zones, and manage risk more effectively. Customer testing for LSE 24 is scheduled to begin by the end of 2026.
Initially, LSE 24 will facilitate trading in exchange-traded products (ETPs), subject to regulatory approval. ETPs are investment vehicles designed to mirror the performance of assets such as indices, commodities, or other financial instruments. Approximately 2,600 ETPs, including exchange-traded funds (ETFs), are expected to be available upon launch. The LSE views ETPs as a logical starting point, leveraging London's status as a major international ETP hub. Future plans include enabling the trading of individual company equities on LSE 24.
The new platform will operate 24 hours a day, five days a week, from Monday to Friday, not continuously throughout the weekend. Its specific hours will be from 5 p.m. to 7:50 a.m., with a 30-minute break between 6:30 p.m. and 7 p.m. for End of Day processes.
This move comes as the LSE faces pressure to attract investors, particularly younger demographics who are drawn to the convenience of smartphone trading and access to cryptocurrency and overseas markets with extended trading hours. Alex Pugh, an investment writer at Freetrade, noted that this is partly a measure to keep London relevant and competitive, offering retail investors greater flexibility. However, he cautioned that longer trading hours do not automatically guarantee improved trading conditions.
The LSE has also been contending with a trend of London-listed companies being acquired by foreign firms or delisting from the market. In the first half of the year, the value of takeovers and exits significantly outpaced the value of new listings. Data from AJ Bell indicates that the average acquisition premium for London-listed firms has reached 45 percent, with U.S. buyers accounting for half of all overseas approaches. Notable acquisitions include Beazley by Zurich for £8.1 billion and Schroders by Nuveen for £9.9 billion.
Richard Hunter, head of markets at Interactive Investor, commented that this initiative could help consolidate London's position as a leading financial center, especially amidst criticism that the exchange had been prioritizing data offerings over core market functions. He suggested that extending hours to mirror U.S. markets might have been an alternative, as many UK platforms are already equipped to handle such demand.
The introduction of LSE 24 follows similar efforts by U.S. exchanges like Nasdaq, the New York Stock Exchange, and Cboe Global Markets, which have also launched or are planning extended trading hours. Julia Hoggett, CEO of LSE, stated that the out-of-hours exchange aims to enhance liquidity, efficiency, and participation, thereby reinforcing London's global financial standing.
However, out-of-hours trading may present risks for ordinary investors. Pugh highlighted that reduced market participation during extended hours can lead to wider bid-ask spreads, making trading more expensive. Additionally, a single large order could cause more significant price fluctuations, potentially resulting in less favorable execution prices compared to normal trading hours.