Deutsche Boerse CEO Warns Against 24/7 Trading
Stephan Leithner argues that round-the-clock trading may fragment markets and hurt efficiency. He notes that major investors prefer concentrated liquidity windows.
The Chief Executive of DEUTSCHE BOERSE AG, Stephan Leithner, has issued a cautionary message regarding the global trend toward 24/7 stock trading. While financial hubs in the United States move closer to around-the-clock operations, Leithner warns that such a shift could inadvertently harm market stability by fragmenting liquidity.
As digital assets and cryptocurrencies continue to operate without traditional closing bells, legacy exchanges are feeling the pressure to adapt. NASDAQ INC recently applied for regulatory approval to extend its weekday trading to 23 hours, and CME GROUP INC is preparing to launch continuous trading for crypto-based derivatives. However, the leadership at the Germany based exchange operator argues that institutional investors prefer concentrated periods of high activity to ensure efficient price discovery.
