03/07/2020

FESE recommends to keep trading hours unchanged 

The Federation of European Securities Exchanges (FESE) represents 36 exchanges in equities, bonds, derivatives and commodities through 18 Full Members from 30 countries, including the Luxembourg Stock Exchange.

In July 2020, FESE issued a statement addressing the ongoing discussion around trading hours in Europe, recommending to keep the market opening hours unchanged. 

Context

In November 2019, the Association of Financial Markets in Europe (AFME), and the Investment Association (IA) called for European equity trading venues to review market opening hours across Europe.

Prior to even considering any changes to trading hours for equities, which could be detrimental to European markets, FESE examined a number of complex issues to fully understand the effects any changes would have on European markets, which led to the following observations:
    • The length of the trading day in Europe caters to investors’ needs
    • The length of the trading day in Europe provides for interaction with other markets
    • Trading hours need to be able to reflect the diversity of various ecosystems
    • The length of the trading day in Europe does not directly impact working hours

FESE reached the conclusion that a shortening of the European trading day could be a move in the wrong direction and overall detrimental to European markets and end investors.

FESE’s position

This is a complex issue that warrants serious reflection in terms of the competitiveness of Europe, market quality, depth of liquidity, the participation of investors in the market whilst also recognising the need to ensure the well-being of employees.  Given the considerations outlined above, FESE believes current trading hours best serve the interest of investors and that a shortening of the European trading day would be a move in the wrong direction and detrimental to European markets.