Deutsche Boerse CEO warns 24 hour trading could fragment markets

Saturday 25 April 2026 - 11:00

By: Dakir Madiha

Deutsche Boerse CEO warns 24 hour trading could fragment markets

The chief executive of Deutsche Boerse has cautioned that the expansion of around the clock stock trading could weaken market structure by dispersing liquidity. Stephan Leithner said continuous trading risks undermining the concentrated activity that large institutional investors rely on to execute transactions efficiently.

Leithner argued that markets function best when buying and selling activity is clustered within defined time windows. He said fragmenting trading across extended hours, including overnight sessions, could dilute liquidity and reduce execution quality. His remarks reflect growing concern among European market operators as exchanges in the United States push toward longer trading hours.

Major US platforms are moving ahead with plans to extend access. Nasdaq has filed proposals to allow equity trading for up to 23 hours a day during weekdays. CME Group has also outlined plans to introduce continuous trading for cryptocurrency futures and options, pending regulatory approval. These developments are driven in part by the rise of digital asset markets, which operate without closing hours, and by increased participation from retail investors accustomed to trading at any time.

Leithner questioned whether institutional demand supports such changes. He said large asset managers depend on deep, aggregated liquidity and are unlikely to shift significant activity into low volume periods such as weekends or overnight sessions. He pointed to Deutsche Boerse’s own XETRA Retail platform, which already extends trading into late evening hours in Europe, as a more targeted solution that balances flexibility with market stability.

The debate also highlights structural challenges within European equity markets. Trading activity is spread across roughly 500 platforms, with only a small portion classified as regulated markets. A significant share of transactions has migrated to alternative venues such as dark pools, reducing transparency. European public markets now account for less than 30 percent of global equity trading, down from about 55 percent two decades ago, while the United States maintains a share near 50 percent.

European policymakers have begun addressing these issues. Finance ministers from several euro area countries have called for increased transparency across trading venues. Leithner said regulatory adjustments could help consolidate liquidity back into transparent markets without requiring large scale mergers between exchanges.

The London Stock Exchange Group has taken a cautious stance. It said any decision to extend trading hours would depend on clear client demand and follow consultation with market participants. Banks and asset managers have expressed concerns about operational strain from overnight trading and the risk of reduced liquidity outside core sessions, reinforcing resistance to a full shift toward continuous trading.