PLUS Markets Group (PMG) has achieved a major landmark in its quest to become a serious competitor to AIM by becoming a ‘recognised’ exchange.
The Financial Service Authority (FSA) has granted PLUS the same status, rights and privileges as the London Stock Exchange (LSE), significantly improving its relationship with investors.
Recognised Investment Exchange (RIE) status is an internationally sanctioned benchmark and is a prerequisite for many investors before they release funds.
Existing member companies should also benefit as they will now be able to access a far greater range of services via the market, PLUS says.
Stephen Hazell-Smith, chairman of PLUS Markets Group, said: “Not having this status acted as a barrier to our market for certain users, and its removal makes us totally accessible to all equity market participants.”
The decision by the FSA is likely to be followed by a period of change on the market.
PMG will soon be opening it s ‘PLUS-listed’ market alongside its ‘PLUS-quoted’ market.
This will be positioned as an EU Regulated Market and will serve the needs of all types and domiciles including investment trusts, REITs and structured products.
Growing PLUS-quoted companies may also elect to step up to the PLUS-listed market should they so wish, with no need to access other markets, PMG says.
Elsewhere in the City the news of PLUS’ elevated status was greeted warmly:
The Lord Mayor of the City of London released a statement saying, “The presence of competing trading platforms, subject to domestic regulation, can only be good for the capital markets as a whole, by driving down the costs of raising capital and trading shares in the secondary market.”
Also, John Pierce, chief executive of the Quoted Companies Alliance, said: “We believe our members will benefit from the wider competition and choice that PLUS will provide, acting as a spur to innovation in the equity markets and improving the value of our members' listing in London.”
© Crimson Business Ltd. 2007