Plus and London Stock Exchange settle AIM dispute
29 May 2009 | 7526 views | 0
Plus Markets has dropped its legal action over restrictions on trading in stocks listed on the junior AIM market, after reaching an out-of-court settlement with the London Stock Exchange.
Under the resolution, the LSE will receive all the information it requires for regulatory purposes, and market makers will be able to quote and trade report in all AIM securities on Plus's markets without any additional trade reporting requirements to the LSE.
In return for the concessions, Plus has waived its damages claims, and each side will bear its own legal costs.
The LSE says it will make changes to its rulebook such that firms will have the right to choose whether to trade AIM securities under the rules of Plus's markets, or under the rules of the LSE. This approach allows Plus and its pan-European mid-cap market Plus-Europe to operate as independent execution venues.
Plus first filed an action in the High Court last September, alleging that the LSE's trade reporting rules were anti-competitive and an abuse of its dominant position in the market.
It says the new structure, including rulebook changes, will be implemented by 1 September at the latest.