Analysis: Could London's City boys start trading at 9am?

Being a London trader is hard graft. The early morning train in to Liverpool Street or Waterloo by 6am, a quick flick through some analyst reports and then ready for the opening bell by 8am. The hours never become easier, if anything the more senior a trader the earlier they have to be in.

Admittedly most are straight out the door by 4.30pm, followed by a quick beer and home - nevertheless the early starts take their toll on health and fitness.

But a latest consultation paper published by the London Stock Exchange today shows this might all be about to change.

When the LSE asked traders what hours they wanted the majority came back with 9am until 4pm, meaning 90 minutes knocked off the day in total.

The LSE is serious about implementing the idea as the exchange believes the new proposed hours would help diversify trading desks and improve mental wellbeing.

The LSE said in the consultation paper: “The key benefit from shorter exchange hours will be the opportunity it affords to firms to attract, accommodate and retain individuals whose personal circumstances require more flexible working hours.

“In addition to market structure and cultural issues, trading remains one of the areas of financial services where staff face significant mental health issues. We believe the excessively long hours play a major contributory part in generating and perpetuating this problem.”

One trader added: “It would be fantastic. The early hours do creep up on you."

Traders also rejected concerns that a shorter trading day would hurt liquidity in markets.

“Most respondents believe shorter hours would improve the velocity of trading and liquidity available on the order book,” the LSE said.

However the plans could yet hit the buffers as they would have to be in line with other bourses around Europe who are understood to not be so keen on the idea.

Euronext, which is conducting its own consultation on trading hours, is sceptical, while Deutsche Boerse is also thought to be lukewarm about the idea.

The London Stock Exchange will go back to market participants to see whether working from home since March due to coronavirus lockdowns has changed how they view trading hours. The exchange first launched a formal review of its opening hours in December last year.