Beyond Nine-to-Five: Spectrum's Report Reveals Surge in Off-Hours Trading

<p>Low
<a href="https://www.financemagnates.com/terms/v/volatility/">volatility</a> in the stock markets in the second quarter had a negative impact not
only on the results of investors' portfolios but also on the revenues of
trading venues. This is confirmed by the financial results published today
(Tuesday) by Spectrum Markets, a securitized derivatives provider, which
reported a noticeable decline in activity in the second quarter. However, this
did not prevent the company from achieving record trading volumes for the
entire first half of 2023.</p><p>Interestingly,
the report also highlighted the significant importance of trading outside
conventional exchange operating hours.</p><p>Spectrum Markets Reports
Record First Half of 2023</p><p>The first
half of 2023 saw Spectrum Markets trade 787 million securitized derivatives,
marking a roughly a jump of 20% from the 657 million sold in H1 2022. On the
other hand, the Q2 dip was characterized by trading numbers at about 340
million, marginally less than the 357 million of the previous year. </p><p>This
decrease mirrored a broader industry trend. Nevertheless, Spectrum's <a href="https://www.financemagnates.com/forex/spectrum-markets-q1-order-book-turnover-exceeds-1-billion/" target="_blank" rel="follow">total
order book turnover rose to €1.77 billion in H1 2023</a>, up from €1.65 billion reported
in the same period last year.</p><p>"As
Spectrum enters the second half of the year, the business remains focused on
driving innovation, and we continue to invest heavily in enhancing and
expanding the foundations of our pan-European trading ecosystem and remaining
at the forefront of retail trading in Europe," Nicky Maan, the CEO of Spectrum
Markets, commented.</p><p>Beyond Nine-to-Five: Surge
in Off-Hours Trading</p><p>In
addition, Q2 2023's trading patterns revealed that 35.3% of individual trades
occurred outside conventional hours. Traders were the most active on indices
(79,2%), and the most dominant instruments were DAX 40 (25.3%), S&amp;P 500
(20.8%), and NASDAQ 100 (18.8%).</p><p>This
confirms the industry-wide trend also visible among typically <a href="https://www.financemagnates.com/terms/r/retail-trading/">retail trading</a>
firms, which have recently expanded their offerings to include trading in
stocks outside the traditional session hours.</p><p>In July, as
many as three firms, <a href="https://www.financemagnates.com/forex/etoro-launches-new-cfds-for-extended-hours-stock-trading/" target="_blank" rel="follow">including eToro</a>, Robinhood, and Interactive Brokers, offered
extended trading periods. The social trading giant now offers three additional
trading hours daily for the most popular Wall Street companies. In recent
months, Robinhood tested the 24-Hour Market service, which it implemented for
all its clients <a href="https://www.financemagnates.com/forex/robinhood-fights-drop-in-users-by-introducing-24-hour-market-trading-for-all/" target="_blank" rel="follow">last month</a>. It covers the 43 most popular stocks and ETFs.</p><p>On the
other hand, Interactive Brokers introduced overnight trading <a href="https://www.financemagnates.com/forex/interactive-brokers-brings-overnight-trading-to-10k-us-stocks-and-efts/" target="_blank" rel="follow">for 10,000 ETFs
and US stocks</a>. This is available from 8:00 pm EST to 3:50 am ET, from Monday to
Friday.</p><p>Spectrum Expands Portfolio
and Partnerships</p><p>In
addition, Spectrum's product catalog has also expanded, with almost 18,000
instruments now available. This growth is part of the venue's strategy to evolve
continuously, fostering a wider array of products and increasing its European
retail investor base. Significant partnerships include welcoming UniCredit Bank
AG in May.</p><p>June was
another milestone month, with Spectrum <a href="https://www.financemagnates.com/institutional-forex/spectrum-markets-granted-membership-to-german-derivatives-association/" target="_blank" rel="follow">supporting the German Derivatives
Association (DDV)</a>. This alliance offers Spectrum a chance to join industry
panels and working groups, facilitating a deeper understanding of regulatory
initiatives in the European market.</p><p>"We've
seen a drop in trading during the last three months, which isn't a huge
surprise considering the wider market environment right now. But I'm pleased
that, overall, with the record quarter we experienced in Q1, volume is still up
for the first half of the year," Maan added.</p><p>Spectrum closed
last year with a record, with <a href="https://www.financemagnates.com/institutional-forex/spectrum-markets-marks-record-2022-as-turnover-surges-147-to-333bn/" target="_blank" rel="follow">turnover rising 147% to €3.33 billion</a>. During
that time, the platform processed nearly 3.5 million transactions, and the total
trading volume grew by 68% from 848 million to 1.42 billion securitized
derivatives.</p>

This article was written by Damian Chmiel at www.financemagnates.com.