LONDON, Feb 12 (Reuters) - The rationale for a "London"
proposal to shorten Europe's share trading day has yet to be
made, pan-European exchange Euronext boss Stephane Boujnah said
on Wednesday.
Asset managers and banks have called for a year-long trial
of a shorter trading day to improve liquidity, help attract more
women into the sector with more family-friendly working hours,
and improve the mental health of traders generally.
The London Stock Exchange has already held a public
consultation on shortening the trading day, but has said that
backing from major bourses across Europe would be needed to cut
hours.
Euronext, which operates markets in France, Ireland, the
Netherlands, Belgium, Norway and Portugal, is due to open its
own public consultation on trading hours next month before
reaching a conclusion.
"We will come with an opinion to comment on whether the
proposal that has been put forward mainly out of London is
relevant for continental Europe and Irish markets, or is more of
a local idea," Boujnah told reporters.
"Frankly at this moment, I don't know."
Analysis was needed on the short and long term impact of
such a change, in particular on retail investors, Boujnah said.
"Is there a next step following that one? What does it mean
in price formation?" Boujnah said.
Britain's departure from the European Union last month has
raised questions about the cohesiveness of pan-European stock
markets once the UK's standstill transition period ends in
December.
London-based share trading platforms CBOE, Aquis Exchange
and the LSE itself have opened units in Amsterdam and Paris to
trade euro shares if need be, thereby fragmenting trading.
(Reporting by Huw Jones, Editing by William Maclean)
