Response to Euronext Trading Hours Consultation
May 14, 2020
On May 14, MFA and AIMA submitted a joint response to Euronext on its consultation on shorter trading hours.
Our response, similar to comments we previously made to the London Stock Exchange, supported the move to shorten trading hours, and specifically to 10:30 to 17:30 Paris/Berlin/Rome time as to preserve an overlap between the European and U.S. markets. We also noted that a reduction in trading hours would:
- Lead to more concentrated liquidity during the trading day, which would be positive for market functioning;
- Give firms additional time to digest research and company announcements ahead of the market opening, potentially allowing them to make more informed trading decisions on behalf of their investors; and,
- Improve the working environment for staff in both trading and operational roles through supporting staff wellbeing and mental health and improving gender equality and work/life balance in the industry.
Most importantly, we urged Euronext to coordinate with other venues and relevant representative bodies in shortening trading hours, but only after the COVID-19 pandemic subsides and there is a return to regular order.