LSE plans a separate overnight venue for exchange-traded products tracking UK and US indices, starting H1 2027, as retail demand grows for round-the-clock access.
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The London Stock Exchange plans to open a separate overnight venue for exchange-traded products in the first half of 2027, giving investors access to UK and US equity and index ETPs during hours the main market is closed.
Chief Executive Julia Hoggett said the move responds to demand from retail investors who trade cryptocurrencies around the clock and want the same flexibility for traditional assets. Speaking about the plan, she cited the ability to react to US market moves and geopolitical events without waiting for the next London open.
The overnight platform will run from 5 p.m. to 7:50 a.m. London time with a 30-minute pause between 6:30 p.m. and 7 p.m. for end-of-day processing. The regular daytime session continues from 8 a.m. to 4:30 p.m. The two venues operate independently, the exchange said.
Initial listings will focus on ETPs tracking major UK and US indexes and equities. Hoggett said the LSE chose that segment because demand for extended hours appears strongest there. ETPs are simpler to support after hours than individual stocks, she added.
The LSE is not alone in extending access. 24X, a US platform, has applied for regulatory approval to offer 24-hour trading. Crypto exchanges have run continuous markets for years, with volumes staying high into the overnight session. That pressure has pushed traditional venues to adapt.
Overnight trading brings challenges. Liquidity is likely to be thinner during certain windows, which could widen bid-ask spreads. Market makers may need to staff extra shifts, and risk management systems must handle continuous exposure. The exchange said it is working on infrastructure and surveillance to address those issues.
Regulatory coordination will also matter. The FCA oversees LSE rules, and extended-hours trading may require adjustments to reporting and circuit-breaker requirements. The LSE has not detailed those steps yet.
The overnight venue is a separate legal entity from the main exchange. The LSE said it will start with ETPs and assess demand before considering other products. Wider adoption across asset classes could follow if the pilot succeeds.
Hoggett pointed to other modernization efforts under way, including accelerated settlement cycles and tokenized asset pilots. The overnight platform is the latest piece of that work.
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