Traders call time on long hours following consultation
Traders have today called for market trading hours to be reduced by 90 minutes to seven hours.
The Association for Financial Markets in Europe (AFME) and the Investment Association (IA) have responded to the London Stock Exchange’s consultation on the issue. They are campaigning for a reduction in hours to either 9am-4pm or 9.30am-4.30pm.
AFME and IA argue that a reduction in hours would “create more efficient markets”, and a shorter trading day would lead to trades being more evenly distributed.
April Day, managing director of AFME, said: “We believe that a shorter trading day will improve liquidity in Europe as, rather than being thinly spread over an extended period of time, trades will be more evenly distributed over a shorter trading day.”
Last month the LSE launched a consultation following calls by industry bodies who said a reduction in trading hours would improve workplace culture and liquidity.
LSE’s consultation document recognised that among the benefits of a change were that it could help “encourage staff diversity” and have a “positive impact on mental wellbeing” of traders.
Faye McGuinness, Head of Workplace Wellbeing Programmes at Mind, said: “We welcome the reduction in working hours for the financial sector, which we hope will give employees an extra 90 minutes per day to focus on their lives outside work.”
“Commonly cited causes of stress and poor mental health at work include long working hours, excessive workload and poor relationships with managers or other co-workers.”
The AFME and IA compared productivity with the US market, which has shorter trading hours but six times the turnover. New York’s normal trading hours are 9.30am-4pm, while Tokyo has a 9am-11am session and a 12.30pm-3pm session.
Galina Dimitrova, Director of Capital Markets at the IA, said: “It’s high time we end the long hours culture, which is detrimental to diversity and mental health, and inefficient for the markets. The London Stock Exchange now has the opportunity to lead the way.”
Connie Cliff, principal associate at law firm Gowling WLG, said: “Considering innovative ways to relieve daily pressures and stresses may just come up with new work practices giving all staff a better work life balance”.