Since 23rd December 2010 Börse Berlin starts its broker aided specialist trade at 8:00 hours CET. A first analysis shows that trading activities in the first hour have increased significantly. More than 16 percent of a day’s total turnovers are generated between 8:00 and 9:00. Trading focuses mostly on DAX stocks and international securities.
The times when exchanges were open for only two hours every day are long gone. In 1995 Börse Berlin took the initiative and extended trading hours from three to five and a half hours. Berlin was also a forerunner in the latest trade extension when trading was preponed first to 8:30 and then to 8:00 CET. After five months early trading Börse Berlin now draws a first balance.
In the first trading hour foreign stocks and DAX securities are in the investors’ focus. Statistical analysis shows that trading activities are significantly higher between 8:00 and 9:00 than at other times of the day:
• During the first half hour 2.5 times more trades take place by average than during a “normal” half hour; during the first hour there are almost twice as many.
• 10 percent of all trades of one day take place during the first half hour, almost 17 percent during the first hour.
• The number of daily trades rose by 18 percent compared to the five months before trading was preponed, the turnover (without bonds) rose by 34 percent.
"The analysis shows that investors appreciate this service. Long trading hours are an important step towards equal opportunities for private investors. Börse Berlin has recognised this earlier than others and thus decided to act accordingly. That trade extensions have repeatedly been copied by other trading venues, pleases us for the sake of private investors", says Dr. Jörg Walter, Joint CEO of Börse Berlin AG.
In a globalised market trading between 8:00 and 20:00 enables non-professional investors to react almost as quickly to market developments as professional market participants. In the morning through parallel trade with Asian exchanges, in the late afternoon and evening through simultaneous trading with markets in USA and Canada.