Frankfurt extends stock trading hours as competition heats up (updated)
25/11/2021 07:08
(Repeats story from Wednesday.)
By Danilo Masoni
MILAN, Nov 24 (Reuters) - Deutsche Boerse DB1Gn.DE will
allow stock investors to trade on the Frankfurt exchange until
the close of U.S equity markets starting from Monday, a move
that highlights heightened competition to win over clients.
The two-hour extension to 10 p.m. local time (2100 GMT)
could bring higher volumes for Deutsche Boerse but also raise
costs, while putting pressure on foreign rivals to possibly
consider a similar move, traders said.
In Germany investors can already trade until that time or
even later through platforms run by local brokerages Tradegate
T2GG.F and Lang & Schwarz LUSGn.DE , which are used by retail
and professional investors.
"Deutsche Boerse offers a lot of foreign shares on their
trading platform and this move could be aimed at attracting more
retail trading interest," said Anish Puaar, European market
structure analyst at Rosenblatt Securities.
Even though retail equity ownership is much smaller in
Europe than in the U.S., where households own more than one
third of the market, the region witnessed a trading boom last
year among retail investors who had more time to trade during
lockdowns. urn:newsml:reuters.com:*:nL1N2KO1XB
The extension would affect shares, exchange traded funds
(ETFs) and mutual funds, and has been made possible by the new
securities clearing platform introduced by German clearing house
Eurex in September this year, the German bourse operator said.
"By extending trading hours, investors can react to events
on the U.S. markets late in the evening, among other things, and
take advantage of on-exchange trading," it added.
The move is the latest development by exchanges to increase
revenues by allowing punters to trade markets in different time
zones. While some exchanges like Moscow have already increased
their trading hours to attract Asian clients, other exchanges
like Tokyo are taking tentative steps in that direction.
urn:newsml:reuters.com:*:nL2N2KZ0ZF
Pan-European exchange operator Euronext ENX.PA said on
Wednesday it had no plans to expand the trading day. Last year
it rejected a proposal to shorten trading hours which was aimed
at improving liquidity, and the well-being of traders.
Shares in Deutsche Boerse have underperformed the broader
German market .GDAXI with shares up only 2% so far this year
compared to a 15% rise in the index.
They have also lagged shares in Euronext ENX.PA although
they have done better than the London Stock Exchange LSEG.L .
(Reporting by Danilo Masoni in Milan, additional reporting by
Saikat Chatterjee and Huw Jones in London and by Stefanie Geiger
in Frankfurt
Editing by Keith Weir)
((Danilo.Masoni@TR.com; +39-02-66129734; Reuters Messaging:
danilo.masoni.thomsonreuters.com@reuters.net; On Twitter https://twitter.com/damasoni))