FESE Note on 24 hour trading in Europe

The evolution of trading hours in Europe must be guided by a balanced and evidence-based approach that considers operational realities, investor preferences, and the strategic interests of EU capital markets. FESE fully supports the ongoing assessment of market functionalities under the T+1 settlement initiative, which will realign the EU with major jurisdictions that are already on T+1.

FESE recommends the following principles in discussions around trading hours and potential extensions:

1.  Preserve market-driven flexibility

• Trading hours should remain the responsibility of trading venues and reflect the needs of local and cross-border investors.
• The diversity of European market dynamics and ecosystems should be respected.

2. Ensure operational readiness for extended hours

• Europe must also ensure that it is ready—both operationally and regulatory—for the possibility of longer trading hours, should the commercial and investor appetite move in that direction.
• The transition to T+1 should be designed in a way that allows venues to offer extended hours if needed. Post-trade processes must support, not hinder, trading flexibility.

The trading venues community will continue to monitor international trends and assess whether and how these may impact Europe’s competitiveness and investor expectations.