Source: Plus Markets Group
Plus Markets Group plc (“PMG”) today revealed the new regulatory framework that will underpin its substantial growth plans, as it expands its range of equity market services and extends its stock coverage into liquid shares and new products.
This framework forms a key part of the PLUS market's offering under MiFID and follows PMG's £25 million fundraising in December 2006.
The revised regulatory framework, which has been opened for consultation with market participants, covers all aspects of the PLUS market, including its Trading Services (secondary market trading) and its Company Services (primary market listing) rulebooks. It also introduces rules for a new "PLUS-listed" market segment - an EU regulated market for investment trusts, REITs and other structured products.
The market's existing regulatory powers and protections are to be strengthened in conjunction with PMG's approval as a Recognised Investment Exchange ("RIE"), which PMG looks forward to receiving from the Financial Services Authority in due course.
Of particular relevance to its existing and potential member firms are PMG's trading service proposals, to take effect with the introduction of MiFID. PMG's new rules will be designed to enable firms using PLUS to meet their MiFID obligations while maintaining London's tried and tested trading practices - including facilitating the continuing operation of the Retail Service Provider model - with minimal impact on equity market participants.
Through simplified membership requirements, PMG intends to provide easy access to its market for authorised investment firms throughout the EU, in line with MiFID's "passporting" arrangements. PMG's market offering will include on-exchange, multi-currency quotation and trade reporting facilities in UK and EU securities (including those classified as liquid shares under MiFID), supported by real-time surveillance delivered to RIE standards. Additionally PMG will complement its on-exchange market services with a suite of off-exchange transparency services including quotation facilities for systematic internalisers.
Jamie Whitehorn, General Counsel and Director of Regulatory Strategy, said: "This enhanced regulatory framework lays down foundndations for the future of an expanded trading and listing service on PLUS. It updates our rules in accordance with RIE status, while revealing the regulatory aspects of a commercially compelling MiFID service offering for PLUS's existing and potential users."
Further announcements relating to the technology and tariff aspects of the PLUS offering will be announced in due course.