Frankfurt extends listing hours as competition intensifies

A general view shows the German Stock Exchange (Deutsche Boerse) in Frankfurt, Germany on February 12, 2019. REUTERS / Kai Pfaffenbach

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Nov. 24 (Reuters) – Deutsche Boerse (DB1Gn.DE) will allow equity investors to trade on the Frankfurt Stock Exchange until 10 p.m. from Monday, a move that highlights increased competition among exchanges to entice the clients.

“By extending trading hours, investors can react to events in the US markets late at night, among other things, and profit from trading on the stock exchange,” the German stock operator said in a statement on its website.

The extension would affect stocks, exchange-traded funds and mutual funds, and was made possible by the new securities clearing platform introduced by Eurex Clearing in September 2021, he added.

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Traders said the move could result in higher volumes for Deutsche Boerse, but also increase costs, while pressuring competitors to possibly consider a similar move.

Retail investors in Germany can already trade until 10 p.m. via the Tradegate platform (T2GG.F) which is also used by professional traders.

This move is the latest development of exchanges to increase income by allowing punters to trade in markets in different time zones. While some exchanges like Moscow have already increased their trading hours to attract Asian clients, some exchanges like Tokyo are taking interim steps in this direction.

The stock operator’s shares have underperformed the wider German market (.GDAXI) with shares rising just 2% so far this year, compared to a 15% increase in the index.

They also fell behind shares of pan-European rival Euronext (ENX.PA) despite outperforming the London Stock Exchange. .

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Reporting by Danilo Masoni; Editing by Saikat Chatterjee

Our Standards: Thomson Reuters Trust Principles.

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