Spectrum Markets reports that traders are abandoning 9-to-5 markets in favor of 24/5 trading

A new report by Spectrum Markets revealed a major increase in after-hours trading activity during August 2024, which allowed it to reach the highest level since November 2022. The report says that the pan-European trading venue for securitized derivatives recorded 38.7% of trades taking place outside of regular market hours.

Traders Increassingly Want Access To Markets Around The Clock

The report brought interesting observations, reflecting a sharp growth in the traders’ appetite for non-stop market access. The multilateral trading facility (MTF) located in Frankfurt, which offers trading 24/5, recorded a sharp surge in demand for extended trading hours from retail investors across Europe.

The new data points reveal that traders are losing interest in 9-to-5 markets while the demand for round-the-clock trading started becoming dominant, which suggests that the European retail traders’ needs are evolving.

In comparison, November 2023 saw 32.3% of all transactions take place in after-hours trading. The new figures show that the number has seen a 6% increase in August 2024.

Spectrum Markets’ Head of Distribution, Michael Hall, commented by saying that the spike in after-hours trading may have been caused by significant market-sensitive events that triggered spikes in volatility during the previous month. The increased volatility may have driven investors to look up more flexible trading options.

H1 2024 Market Sees A Drop In Volume

Two months ago, the European trading venue for retail investors published an H1 2024 business update, which revealed that the challenging market conditions resulted in a mixed performance. There was a 15% drop in volume compared to the same period in 2023, with the spectrum reaching a turnover that was $200 million lower than in H1 2023, sitting at only $1.5 billion.

However, in spite of the downturn, Spectrum Markets still demonstrated resilience, and has evn extended its product range to include around 1,800 ETFs. It is also worth noting that 2023 was an exceptionally strong year for Spectrum, so lower figures in 2024 might not come as a total surprise.

It is also worth noting that Spectrum’s proprietary SERIX sentiment indicator shows a noticeable bearish shift in investor outlook. The change has been particularly noticeable when it came to the French CAC 40 Index. According to the indicator, the CAC 40 value went from the neutral zone with a value of 100 in July to 93 in August, which is a bearish sign.

The shift reflects an increase in caution among retail investors who were concerned about the state of the French economy post-Olympics.

Commenting on the matter, Hall said: “Our bearish investor sentiment index indicates a degree of pessimism among retail investors, as the attention switched back to politics. After the heightened political uncertainty caused by President Macron’s call for a snap election in June, the upcoming Olympics worked as a distraction to investors’ concerns.”