GAM Investments: 24-Hour London Trading Unlikely to Boost Market

The London Stock Exchange's initiative to implement nearly 24-hour trading for equities is unlikely to significantly revitalize the market, according to the head of GAM Investments’ global equities team. This assessment suggests that the proposed extended trading hours may not be sufficient to overcome existing competitive pressures and established investor behaviors.

The rationale behind this skepticism points to several factors. The global financial landscape is characterized by intense competition from other major trading centers, each with its own established infrastructure and liquidity. Furthermore, investor habits and preferences for trading windows are deeply ingrained and may not readily adapt to a continuous trading model, especially if perceived benefits are marginal. The effectiveness of such a shift hinges on attracting substantial new trading volumes and liquidity, which remains uncertain.

GAM Investments, a prominent asset management firm, has expressed concerns that the move might not address the core issues impacting the London market's competitiveness. While extended hours could theoretically increase accessibility, it does not inherently guarantee increased deal flow or a stronger market position against rivals like New York and Asian exchanges. The firm's perspective suggests a need for broader strategic reforms beyond just trading schedules to bolster the exchange's appeal and performance in the long term.