Last checked at 
* Traders say shorter day would increase efficiency
* London Stock Exchange to consult with members
* Cboe says best to start later but not end earlier
* European exchange body: current hours "fit for purpose"
By Huw Jones
LONDON, Nov 7 (Reuters) - Banks and fund managers want the
European stock trading day shortened by 90 minutes in a radical
move they say would improve market efficiency and staff
wellbeing - but exchanges are split.
The Association for Financial Markets in Europe (AFME), a
banking industry body, and UK-based Investment Association (IA),
which represents asset managers, said Europe had some of the
longest trading hours in the world at 8-1/2 hours.
This compares with 6-1/2 hours on Wall Street and 6 hours in
Asia, the two industry bodies said in a joint statement on
Thursday.
AFME and IA, whose members including Goldman Sachs,
Barclays, BlackRock and BNP Paribas account for the bulk of
share trading, said they were talking with major European
exchanges to explore cutting the trading day by 90 minutes.
The opening bell would be rung at 0900 GMT, an hour later
than at present, with the close 30 minutes earlier at 1600 GMT.
The first hour of trading currently attracts light volumes,
making it more costly to trade, with over a third of trading in
the final hour.
"Shortening the hours would concentrate liquidity leading to
more consistent trading costs and provide greater time for
traders and the market to digest corporate announcements," AFME
and IA said.
Long hours affect the mental health and wellbeing of traders
and are a key obstacle to recruiting more diverse staff, in
particular for those with family or caring commitments, they
added.
The Financial Conduct Authority, which regulates share
trading, said last month the number of women in senior financial
roles had flat-lined since 2005 despite the sector's "rhetoric"
on diversity, with brokers the worst.
The London Stock Exchange said it strongly supported
improving diversity and workplace culture, and intended to
consider the request in a formal consultation with members and
users.
FIT FOR PURPOSE
Share trading in Europe already faces fragmentation due to
Britain's departure from the European Union, and differences in
trading hours could accentuate any divide.
Rainer Riess, director general of the Federation of European
Securities Exchanges, said Europe's current trading hours were
"fit for purpose" and should not be revisited.
"A reduction of trading hours in Europe would give an
advantage to other jurisdictions in similar or equivalent time
zones to expand their trading hours," Riess said.
Existing hours reflect investor needs, allow European
markets to interact with the United States and Asia, Riess said.
Cboe, Europe's biggest cross-border exchange, said it would
likely make the most sense to shorten sessions at the beginning
of the day given they do not overlap with the U.S. market.
Aquis Exchange said that while it welcomed steps to improve
markets, cutting trading hours was not the most effective way of
boosting diversity or the number of women.
(Reporting by Huw Jones; Editing by Mark Potter)
