The days of having to wait until Monday morning to react to news that broke during the weekend may be numbered for some investors. LMAX Group plans an “institutional grade” venue that will help some traders react to weekend tweets from President Donald Trump!
Working from home during the coronavirus pandemic has sparked a rethink of how conventional trading is done. Even before Covid-19, closing the foreign-exchange market while shops were open and global summits powered ahead looked archaic. That impression has been amplified by crypto currencies such as Bitcoin, which trades throughout the week and can spike at weekends. Yet hurdles remain before big institutions embrace trading throughout the week. Tight liquidity can distort prices, for example during the so-called witching hour between the U.S. close and Asian open, or early Monday mornings in Australia. Without a deep market, a trade of 100 million pounds ($127 million) could cause heightened volatility.