PLUS Markets Group plc, the new stock exchange for London (the “Exchange”), reports its interim results for the six months to 30 June 2008, demonstrating continuing progress in a rapidly changing post-MiFID environment characterised by difficult market conditions. Firm foundations have been laid towards further development of the Exchange’s business.
Highlights
- Monthly market share of up to 50% of UK small & mid-cap equities with 2.1m trades reported representing 11 billion shares valued at £17 billion;
- Capital markets activity maintaining momentum in difficult market conditions, with 23 new firms admitted to a total of 223 PLUS-quoted companies and the Exchange’s first Official Listing.
- Revenue steady at £1.60m (2007 - £1.68m) with loss of £2.41m (2007 - £0.8m), in line with the Board’s expectations and with £19m cash remaining following a £25m Placing in January 2007.
Developments since 30 June:
- Foundation of a pan-European equity market for small and mid-caps through an agreement with Bayerische Borse AG, the operator of the Munich Stock Exchange, to create “PLUS-Europe”;
- International vision extended to an Asia-Pacific initiative with the New Zealand Stock Exchange.
- Trading platform development to include:
- A “dark liquidity pool” for small and mid-caps;
- A “hittable quotes” board for large caps; and
- Appointment of London Clearing House as the central counterparty for dark pool and hittable quote trading
Trading AIM securities
PLUS Markets is disappointed that HM Treasury have not been able to realise plans to liberalise trading in AIM securities. The recent outage at London Stock Exchange plc (“the LSE”) particularly highlights the need for an alternative. Consequently, the Exchange is rapidly proceeding with the creation of PLUS-Europe, which will include the trading of all AIM securities from launch.
Additionally, the Exchange has issued proceedings in the High Court which challenge the LSE rule which prevents member firms of PLUS-Europe which are also members of the LSE from executing trades in AIM securities on a non-LSE market. PLUS considers this to be anti-competitive and seeks a High Court declaration that the rule is null and void or otherwise unenforceable. “PLUS believes that the rule is unnecessary and disproportionate and the burden of demonstrating otherwise rests with the LSE. Consequently, it is PLUS’ case that the rule represents an abuse of the LSE’s dominant position,” said Director of Regulatory Strategy Jamie Whitehorn.
Commenting on the interim results, Chief Executive Officer Simon Brickles said: As a new small and mid-cap stock exchange for London, the only new entrant in this sector, we continue to extend our offering on technology, market coverage and international initiatives. With our regulatory licences, technology, strong balance sheet and a full set of IPO services, we have a complete range of execution services which supports our revenue-generating data offering. We are determined to offer execution services in AIM securities and we look forward to offering investors full competition and choice via PLUS-Europe.”
