Euronext head of international listing Gilles Ohana says demand for 24-hour trading sessions is being driven by retail investors but argues that, on the contrary, shorter trading days could actually boost liquidity in capital markets.
The Euronext Stock Exchange is based in Amsterdam, but it is a pan-European exchange — it spans the Netherlands, Portugal, Belgium, France, Ireland and the UK.
The bourse is home to more than 1,800 companies and has a market capitalisation of about €6.3-trillion — making it the seventh largest stock exchange in the world.
It was founded in 2000 to represent the economy of Europe as a whole, which is why it operates in euros.
Ohana told Business Day the exchange was looking into the possibility of 24-hour trading sessions, but a decision had not yet been taken at this stage and said demand for extended trading hours was driven by retail investors.
“The idea around 24-hour trading is mainly due to retail investors who want exposure on a continuous basis. The reality is that institutional investors are less likely to be in favour of the move,” Ohana said.
“If you’re a professional investor, you’re in front of your screen all day long. In fact, a lot of institutional investors would probably be in favour of shortening the trading day because that increases the liquidity,” he said.
“I know that some of the US public exchanges have announced their intention to look into this [24-hour trading]. We are also looking at this market quite carefully, but I don’t think it’s a done deal, to be honest. If anything, it is really driven by retail investors more than anything else.”
The London Stock Exchange Group (LSEG), Nasdaq and the New York Stock Exchange (NYSE) have either announced or are said to be considering extending their trading hours to 24 hours.
Nasdaq is the world’s second largest after the NYSE, which has also sought permission to offer around-the-clock trading.
It is believed that if widely adopted, 24-hour trading could open up new avenues, particularly for retail and international investors seeking more flexibility in accessing global financial markets.
The JSE’s incoming CEO, Valdene Reddy, who currently holds the position of director of capital markets, told Business Day earlier this year that the bourse was monitoring global events that have seen the world’s largest stock exchanges pursue 24-hour trading hours.
“Extended hours for trading have been discussed quite widely globally with the announcement by Nasdaq to get to 24/7 trading by 2026, and now NYSE and LSEG are also referencing a move,” Reddy said.
“The use case and operating model for 24 hours have been proven with trading across digital assets and, in particular, crypto. So, it’s a model that has been in play with traditional assets looking to catch up,” she said.
“With global shifts, and with the JSE having over 25% of its counters as dual-listed, and with a mix of both global and local issuers and investors, we are watching this space closely to understand the timing and trajectory of global market shifts and will respond appropriately to ensure the relevance of the SA capital markets.”
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