Revolutionizing Trading: Europe’s Stock Exchanges Explore 24-Hour Trading to Empower Retail Investors

European stock exchanges are contemplating the potential for 24-hour trading as retail participation lags significantly behind that in the U.S. Alex Dalley, head of European cash equities at Cboe Europe — the continent’s largest stock exchange operator — shared insights with CNBC, noting a growing appetite among global retail investors to engage in European cash equity markets. This interest comes as Cboe Global Markets recently announced its plans to provide round-the-clock trading for U.S. equities five days a week on its Cboe EDGX Equities Exchange.

To bolster retail investor involvement in Europe, Cboe introduced a new service earlier this month aimed at reducing trading fees across 18 European markets. Meanwhile, the Financial Times reported that the London Stock Exchange Group (LSEG) is exploring the technological and regulatory ramifications of extending its trading hours. However, LSEG declined to comment on this development when approached by CNBC.

Further insights indicate that many European investors are more inclined to trade U.S. equities and related products during after-hours sessions rather than showing renewed interest in European companies. SIX Group, which operates the Swiss stock exchange, revealed it is evaluating the extension of trading hours for structured products, such as exchange-traded funds (ETFs) and derivatives, driven by heightened demand for U.S. stocks. Conversely, Euronext, which manages stock exchanges in key cities like Paris, Amsterdam, and Brussels, stated it has not observed a significant demand from clients for extended trading. A spokesperson for Euronext emphasized, “Given that there is no consensus among industry participants on buy-side, sell-side, and industry associations, Euronext doesn’t see an immediate need to take action to review its overall trading hours.”

Deutsche Börse, which runs the Frankfurt Stock Exchange, echoed Euronext’s stance, suggesting a willingness to extend trading hours only if demand materializes. A spokesperson mentioned, “If there is demand, we would extend the trading hours further. However, this is currently not the case.”

UK’s leading stockbroker, Hargreaves Lansdown, described the London Stock Exchange’s consideration of 24-hour trading as “bold,” but expressed skepticism about its potential to boost the appeal of listed companies to investors. Matt Britzman, a senior equity analyst, noted, “This move, still in its infancy, primarily caters to retail investors navigating markets via smartphones rather than liquidity-sensitive institutional giants. That’s positive for retail involvement but is unlikely to move the dial on the attractiveness of UK versus US markets for companies considering a listing destination.”

Britzman further cautioned that extended trading hours come with increased risks for all investors. The lower trading volumes during after-hours have previously contributed to sharp price fluctuations. Such volatility could lead to margin calls for investors unaware of their market exposure. In the U.S., platforms like Robinhood have catalyzed significant after-hours trading activity, with the New York Stock Exchange applying to extend trading to 22 hours a day, while Nasdaq aims for 24 hours.

Robinhood CEO Vlad Tenev remarked earlier this month that cryptocurrency markets have already set a precedent for eliminating traditional trading hours, noting, “Customers love it. They love being able to trade on Sundays before the market opens.”

Despite ongoing efforts, retail investment levels in U.K. markets remain low; a report from Aberdeen highlighted that Brits maintain the lowest percentage of their wealth in investments among G7 nations, at just 8%. In contrast, U.S. adults have approximately 33% of their personal wealth in equities and mutual funds. Dalley concluded, stating, “While it is important to make investing in European equities as attractive as possible, it’s worth noting that Europe’s trading hours are already longer than any other jurisdiction.” Demand and feedback from global retail investors will be pivotal in any decisions concerning the extension of European trading hours.

Original Source: https://www.cnbc.com/2025/07/22/europe-stock-exchanges-mull-24-hour-trade-to-attract-retail-investors.html
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Publish Date: 2025-07-22 15:43:00