Plus Markets, the quote-driven alternative to the London Stock Exchange's SETSmm order taking system for smaller growth companies, is reporting solid progress in its first two months of operation.
Plus Markets, which also operates the third-tier Ofex market, launched in early-December with the backing of five market-making firms. The launch coincided with migration of the top 50 AIM-listed stocks to the LSE's hybrid electronic order book SETSmm, a move opposed by some marketmakers who claimed that it would tighten spreads and make smaller company trading uneconomic.
Over 750 companies are now trading on the Plus Markets platform, including substantially all listed securities outside the FTSE 350. The service recorded December trading activity of 11,779 bargains representing £101.5m value traded, rising in January to 29,165 bargains representing £235.1m traded.
Simon Brickles, Plus Markets CEO says participation on the platform is on an upward curve, with new participants online and further membership applications in the pipeline.
"We have attracted broker dealers, market makers and client-driven volume," he says. "This is a clear endorsement of our market model and we look forward to expanding our membership further."