London Stock Exchange plans LSE 24 venue for extended trading

London Stock Exchange plans to launch a separate extended-hours trading venue, LSE 24, designed to operate from Monday to Friday and give investors access outside the UK’s regular trading day. The exchange said client testing is expected by the end of 2026, with exchange-traded products planned as the first asset class in the first half of 2027, subject to regulatory approval.

The planned venue would operate independently from the London Stock Exchange Main Market, which will keep its current 08:00 to 16:30 trading session. LSE 24 is intended to run from 17:00 to 07:50, with a 30-minute break from 18:30 to 19:00 for end-of-day processes, according to the exchange.

London Stock Exchange said the new venue is aimed at global investors seeking more flexibility to respond to events, find liquidity across time zones and manage risk outside traditional UK market hours. The proposal comes as exchanges and market infrastructure groups assess demand for longer trading windows, particularly from investors using automated and algorithmic systems.

ETPs to come first

The exchange said exchange-traded products, or ETPs, are expected to be the first instruments available on LSE 24. ETPs include listed products that track assets, benchmarks or baskets of securities, allowing investors to gain exposure through exchange trading rather than direct holdings of the underlying instruments.

London Stock Exchange cited London’s established ETP market and international demand for products that provide market exposure across regions as reasons for starting with the asset class. The venue may later expand into equities, according to the exchange.

LSE 24 is expected to combine features of a central limit order book and request-for-quote trading. In a central limit order book, participants submit buy and sell orders that can interact according to price and time priority. In request-for-quote trading, participants seek executable prices from liquidity providers for a specific trade. The exchange said using elements of both models is intended to support price transparency and liquidity on demand.

Digital infrastructure and controls

London Stock Exchange said LSE 24 will be built on London Stock Exchange Group’s financial market infrastructure and connected to its digital markets systems. The exchange said the design is intended to support more automated trading workflows while retaining the governance, resilience and controls expected of a regulated market.

Julia Hoggett, chief executive of LSE plc and head of digital and securities markets at LSEG, said the planned launch would give clients more flexibility beyond standard trading hours and support more connected global markets. She said integration with LSEG’s digital market infrastructure is expected to support liquidity, efficiency and wider participation, while reinforcing London’s role as a global financial centre.

The exchange also said LSE 24 is expected, subject to regulatory approvals, to use LSEG’s Digital Securities Depository, which is being developed with market participants. LSEG said the depository is intended to support digital issuance, settlement and asset servicing, and may extend into additional asset classes based on client demand.

London Stock Exchange said it plans to work with other market participants as the structure develops. The launch timetable and asset scope remain dependent on regulatory approval and completion of the planned technology build.

This story draws on original reporting from Finextra Research.