Proactive Investors - UK financial regulators are mulling whether to start releasing economic data later in the morning, after a request from concerned traders and investors.
A decision on ending the release of data before the stock and bond market opens at 8am will be given in the first few months of 2025, Bloomberg reported this morning.
A Bank of England panel is consulting with the Office for National Statistics on the matter, as institutional investors believe the practice of pre-market releasing sparks unnecessary volatility that affects the real economy.
Important monthly or quarterly data reports, such as those focused on inflation, unemployment and GDP, are currently released by the ONS at 7am, an hour before trading begins on the stock market and on government bonds markets at 8am. Sterling interest-rate markets open at 7.30am.
Companies also generally release their results and other updates from 7am via the regulatory news service (RNS).
Before the pandemic, the ONS released its data at 9.30am.
The BoE's committee, including representatives from Blackrock (NYSE:BLK), HSBC (LON:HSBA), LSEG, NatWest (LON:NWG) and Rabobank, called for a later release time "to improve liquidity".
Published minutes from the SONIA stakeholder advisory group, said: "All members present favoured data releases returning to within market hours, with the exception of one member, who was agnostic.
"A return to data releases within market hours supports real time risk management and is consistent with international markets.
"It was noted that the Bank’s MPC announcement was during market hours when there was more liquidity.
"Data releases outside of market hours can cause spreads to widen due to reduced liquidity. This can be transmitted to the wider economy via increased costs.
"Liquidity can also be affected on the afternoon prior to data releases and on the market open on the morning of data releases."