Most brokers, bankers and investors in the United Kingdom are seeking shorter trading days in order to have improved life qualitatively, said LSE in a statement.
Currently, the market opens at 8 in the morning and wraps up at 4:30 in the evening. Most market participants have suggested a 9 to 4 time as they cannot do other work during the market hours. All the works are either prepone or postponed each day. The long trading hours lead to mental health issues along with stressful family life.
Investment Association director for investment, Galina Dimitrova, said shorter hours may improve wellbeing as well as help in delivering better outcomes to clients.
Hence, the proposal basically means seven hours of working against more than eight hours. The Asian exchanges are open for six hours while the exchanges in the United States function for six hours a day.
Market experts point out that traders remain in the office from 6 in the morning to 6:30 in the evening to finish the work. Shorter trading hours may concentrate trading.
Meanwhile, LSE said the result of consultations is awaited from Europe and therefore the proposal may take a longer time to make a decision. Euronext simultaneously is consulting for the same with members.
LSE spokesperson stated most respondents agreed to shorten the trading hours as the step may result in well-being and improvements.
Meanwhile, it is even a concern that any change made in the LSE trading hours should be well aligned with the European exchanges as well as other trading venues. A mismatch may not result in the optimum benefit of shorter trading hours.
It is yet too early to say what could be the outcome of reduced market hours. It is better if the exchange initially makes the changes temporarily for further review after a couple of months.