The chief executive of Six Group, the Swiss stock exchange operator, has stated that demand for longer trading hours in Europe remains limited, despite growing calls from some market participants for extended sessions. In an interview, the CEO emphasized that the current trading schedule aligns well with investor needs and market dynamics.
Current Trading Hours Sufficient
According to the Six chief, the existing trading hours from 9 a.m. to 5:30 p.m. are adequate for most European investors. He noted that extending hours could lead to increased costs and complexity without significant benefits. The CEO pointed out that liquidity and volatility patterns are well-established within the current framework.
Market Structure Considerations
The executive highlighted that Europe's market structure differs from the U.S., where after-hours trading is more common. In Europe, the focus is on maintaining efficient and orderly markets. He argued that any extension would require careful consideration of its impact on settlement, clearing, and trading infrastructure.
Investor Preferences
Surveys and feedback from institutional investors indicate a lack of strong demand for longer hours. Many investors prefer to execute trades during peak liquidity periods. The CEO added that retail investors, who might benefit from extended hours, are already served by other trading platforms.
Global Comparisons
While some Asian and U.S. exchanges have moved to longer hours, the Six chief believes Europe should not follow suit without clear evidence of demand. He cautioned against a one-size-fits-all approach and emphasized the importance of regional market characteristics.
Future Outlook
Six Group will continue to monitor market trends but has no immediate plans to extend trading hours. The CEO concluded that any changes would need to be driven by client demand and supported by robust infrastructure. For now, the status quo serves the market well.
