European managers and investors claim to reduce the opening hours of the stock exchanges in the EU

The operators of the investment management sector and the banking sector, represented by the European Financial Markets Association (AFME) and the Investors Association (IA), claim the London Stock Exchange (LSE) and other European Stock Exchanges to review the trading hours of equity throughout Europe and reduce them to "create more efficient markets."

Specifically, they request to shorten the current opening hours from 09:00 to 17:30 to a new strip between 10:00 and 17:00. "This 90-minute reduction in opening hours would create more efficient markets, which would benefit savers and investors," they said in a note released Thursday by both organizations.

They also ensure that with this request they seek to "improve culture, diversity and well-being in the parks and create more efficient markets."

Currently, the first hour of trading usually attracts little liquidity and, therefore, at a more expensive time to operate, while the last hour attracts about 35% of the total daily volume . This modification of the schedule would concentrate liquidity, which would lead to more consistent negotiation costs and give operators and the market itself more time to assimilate and manage corporate announcements, according to the Joint Letter sent by AFME and IA.

The current opening hours of the main parks in Europe are one of the longest in the world, with 8.5 hours, compared to other world markets such as the US (6.5 hours) or Asia (6 hours). In addition, stock traders are expected to extend their hours before and after markets open and close. This culture of long working hours affects mental health and the well-being of workers .

Likewise, this fact has been identified as one of the obstacles to attracting and retaining talent, especially in cases where there are family or care commitments. This change in the schedule would also have a positive impact on the work environment, by improving the balance between personal and work life, while taking a necessary step towards creating more diverse and inclusive markets.

"AFME and the IA are debating with the main European stock exchanges to address a reduction in trading hours," says April Day, general director and head of equity at AFME.

For Galina Dimitrova , director of capital markets in AI, "the reduction of working hours, which allows a better balance between professional and private life, could bring significant benefits to workers and companies, and improve the recruitment of more diverse talent. "

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