Canada’s Montreal Exchange extends trading hours to capture Asian investors

The derivatives exchange will extend its trading time by four hours starting today, to encompass the time zones of Hong Kong and other Asian cities

The derivative products are most likely to appeal to institutional investors rather than individuals, analysts said

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The Montreal Exchange is a derivatives exchange in Quebec which trades futures and options on equities, indices, currencies, energy and interest rates. Photo: Allen McEachern

Published: 8:30am, 20 Sep 2021

Canada’s derivatives exchange has extended its trading day by four hours to encompass the time zones of Hong Kong and other Asian cities, as it aims to tap the fast-growing Asia-Pacific market, according to its chief executive.

From today (August 20), the Montreal Exchange will trade 20.5 hours a day, from 7.30am Hong Kong time – including a 30-minute pre-trading session in the morning – to 4am the next day (7.30pm to 4pm the next day EDT), so that investors in Asia-Pacific can trade Canadian derivatives.

The derivative products are most likely to appeal to institutional investors rather than individuals, analysts said.

The move comes three years after the Canadian bourse extended its trading time by four hours to cover the opening of the London market, which brought in more European investors.

“The bourse hopes the further extension will allow it to capture the fast-growing Asia-Pacific market,” said Luc Fortin, president and chief executive of the Montreal Exchange, in a zoom interview.

“The extension of trading hours is part of Montreal Exchange’s globalisation strategy, as we continue to push the evolution of our markets and address the increasing global demand for Canadian derivatives.