Why is the ASX open for only 6 hours?

[rub92me]

Just out of curiosity, does anyone know why the Australian Stock Exchange only operates from 10-4? Would there be any benefit of having a longer or shorter trading day?

 

[rub92me]

Great, got the whole forum stumped. Or no one cares. :blaah:
I was hoping for at least one wacky conspiracy theory to explain this.

 

[Realist]

Good question, I think it is cause stock brokers are nearly as lazy as teachers and politicians and can't be buggered working 40 hour weeks 48 weeks of the year..


I'm kidding.

 

[insider]

Just out of curiosity, does anyone know why the Australian Stock Exchange only operates from 10-4? Would there be any benefit of having a longer or shorter trading day?

Because the banks are open at those times... and it supposedly takes 2 hours to open and close the banks...

 

[doctorj]

and it supposedly takes 2 hours to open and close the banks...

Interesting, what is your source?

These days with electronic balancing and cash management, branches take about 45mins to open and anywhere between 30mins to an hr and a half to close.

I'd always thought that the opening time was an allowance to stockbrokers on the west coast who have to be ready for the market open by 7am during summer and the closing time was to allow time for all the functions of market participants that are best done when they don't have to be keeping a watchful eye on the screens.

 

[michael_selway]

Because the banks are open at those times... and it supposedly takes 2 hours to open and close the banks...

Yeah ANZ closes at 4pm on Mon-Thurs and 5pm on Fridays

Westpac 5pm everyday?

Thx

MS

 

[krisbarry]

The ASX only represents around 3% of the total of the worlds markets, that would be one of the main reasons for a short trading period.

Also note the market shuts early (around 2pm) on the eve of a few public holidays. Seems to be more to do with the thin trading activity in the leed up to public holidays. Maybe they are also trying to be people friendly, eg brokers getting home early to see their family etc.

I also reckon there is a high level of stress in the financial markets, this may also contribute to smaller working hours to stop burnout.

A smaller trading day also contributes to a better and more volatile market I guess. Its like the old days when supermarkets traded 5 and a half days a week. Saturdays mornings were a zoo, now we have 7 days a week and late night trading throughout the weekdays and it spreads the load.

 

[bvbfan]

I think the time of opening is back from old paper based days where brokers and the market still had floor traders and chalkies and had top manually input trades.

Also gives them time to read analyst reports and get in contact with clients etc before and after days trade

 

[wayneL]

the US is open for 6:30 and some futures markets (grains) are only 3:45

fwiw

 

[bvbfan]

I think the DAX is probably the market with the longest trading hours. 9am to 4pm , then late trading until 8pm I think

 

[dutchie]

I would like to see the ASX open at 9.00 am and close at 3.00 pm (or 4.00pm).
In QLD, without daylight saving, the ASX has the above local times. Nice!
I would also like to see the all the shares open and close at the same time, instead of being staggered. Surely it's just a matter of getting a bigger computer.

 

[PZ.]

Perth in summer would be nice - trade from 7am to 1pm - then off to the beach.

 

[dutchie]

Perth in summer would be nice - trade from 7am to 1pm - then off to the beach.

Even better!