London Stock Exchange to launch round-the-clock trading next year

By Samuel Indyk

LONDON, July 21 (Reuters) - The London Stock Exchange on Tuesday announced plans to launch LSE 24, a night-time trading site for some exchange-traded products, in the first half of 2027, a move that could pave the way for round-the-clock equities trading in the future.

Traditional exchanges have been grappling with the growth of cryptocurrencies and other assets, which are not restricted by conventional opening hours and have raised expectations, particularly among retail traders, of being able to trade at any time.

LSE's new exchange will operate separately from its main market and will initially offer access to exchange-traded products such as funds tracking the UK or U.S. stock markets. 

Julia Hoggett, CEO of the London Stock Exchange, said that other securities, such as equities, could be traded on LSE 24 in the future. 

"We certainly envisage that would be the next step," she said. "You could see a version of the world where LSE 24 trades exactly the same securities that the main market trades." 

The Financial Times first reported details of the new exchange on Monday.

Nasdaq plans to extend trading to 23 hours on weekdays in December, and CME rolled out 24x7 trading of crypto futures and options in late May. Cboe, meanwhile, plans to launch 23x5 trading of U.S. equities on its EDGX Equities Exchange in December.

LSE's new exchange would aim to service the growing demand from domestic retail investors, as well as international institutional clients, particularly from Asia, Hoggett said.  

"We have a lot of member firms who are in Asia who increasingly have appetite to continue to trade the securities that they have access to on our market," she added. 

LSE 24 will operate from 5 p.m. to 7:50 a.m. London time, with a 30-minute pause between 6:30 p.m. and 7 p.m. to apply end-of-day processes. The main market will continue to operate under its standard hours of 8 a.m. to 4:30 p.m.

Reuters provides news for LSEG's news and data terminal, Workspace, and other products.

(Reporting by Samuel Indyk in London, Fabiola Arámburo in Mexico City and Shashwat Awasthi in BengaluruEditing by Shailesh Kuber, Sonali Paul, David Goodman and Joe Bavier)