PLUS Markets Group plc (“PLUS Markets”) confirmed today that it has successfully completed a Placing to raise £25 million, to fund a further substantial extension of its trading and quotation services.
The announcement comes almost exactly twelve months since PLUS Markets extended its UK equity trading offering. PLUS Markets Group’s focus on small and mid-caps and the UK private client broking community has already attracted:- 46 brokers and 7 market makers to become members of the PLUS market;
- over 460,000 bargains totalling more than 5bn shares worth over £2.6bn value executed on PLUS (year to end of November);
- significant liquidity in the FTSE Fledgling and Small Cap segments; and
- growing credibility as a quotation destination, with over 180 companies now quoted on its primary market.
PLUS Markets has established its presence as a fully-operational, independent UK equity market in the City of London. From this basis, it has already announced it is in the course of seeking Recognised Investment Exchange status from the FSA, with the aim of achieving that status during the second quarter of 2007.
The well-publicised developments taking place in European equity markets are likely to provide significant new business opportunities for PLUS Markets. These include factors such as potential global exchange consolidation and the changing regulatory framework under MiFID.
The Company intends to invest in its regulatory and technical infrastructure, including:- new trading technology, to facilitate trading between a wider range of market participants in a wider range of securities;
- new listing products following the achievement of RIE status,
- expansion of its trading services to allow investment firms to meet their execution, reporting and transparency needs under MiFID in an efficient and cost-effective manner.
As well as a strengthened balance sheet, the Board is also being strengthened with the appointment of four new Directors, to support executive operations and to benefit from the non-executive expertise of two former directors of the London Stock Exchange.
Commenting on today’s announcement, Simon Brickles, Chief Executive Officer, said: “PLUS Markets Group has evolved rapidly over the last two years. The proposals that we have announced today represent a sea change in the scale of our operations. The Placing will enable us to fund a further substantial extension of our trading and quotation services including into more liquid securities. The new appointments to our Board will ensure that we have the leadership necessary to develop into a fully competitive stock exchange for London.”
