Currency and cryptocurrency trading platform operator LMAX Group has confirmed the launch of an institutional weekend currency trading service, which will allow clients to trade outside of market hours.
Known as Weekend FX, the service will trade from 5:05 p.m. EST on Friday to 5 p.m. EST on Sunday when the spot FX markets are closed. LMAX says the launch marks the first institutional-grade trading infrastructure to facilitate out-of-hours trading.
The new service was introduced in response to demand from investors and liquidity providers to trade and hedge currency exposure when the underlying forex market is closed. Announcements and market events that take place outside of forex trading hours have also increased, impacting the ability of traders to react or capitalize on opportunities quickly.
“The past few months have reinforced the common understanding that volatility doesn’t end on Friday nights and that risky events now extend beyond the work week,” said David Mercer, CEO of LMAX Group. “As a result, the current trading session does not reflect the growing need of market participants to access 24/7 FX liquidity in order to trade risk – this is putting significant pressure on the forex market. so that it evolves with the times and becomes fully accessible for seven days. one week.”
Mercer added that the LMAX team sees the launch of the Weekend FX service as the first step for all asset classes and markets in transition to full market access. It is also certain that there will be long-term demand for the service, and the planned FX spot trading will soon transition to 24/7 trading.
“We are very confident about the long-term demand for this service, given the inevitable shift to 24/7 currency trading thanks to continued investor demand over the past 30 years for increased access to the currency. market, increasing levels of global trade and the need for more efficient capital markets, ”added Mercer. “We see a full shift to 24/7 spot FX trading a real possibility over the next five years, with Weekend FX representing a clear step forward towards achieving this goal.”
Unlike FX, stock markets in Europe are currently looking to reduce market hours following calls from traders asking exchange groups to consider the impact of shorter market hours on issues such as diversity. and the well-being of market participants. Responses to a recent London Stock Exchange consultation revealed that the industry is broadly in favor of the move, although all stock exchanges in the region are expected to implement the changes for the benefits to be fully realized.