PLUS challenges LSE
Article Date: Sep 19 2007New tariffs from share market operator PLUS Markets Group are designed to ‘compete aggressively with other exchanges’ and ‘attract market share’.
AIM-quoted PLUS, which runs the share trading facility previously known as Ofex and provides an alternative platform for many London Stock Exchange and European shares, has abolished membership fees and exchange access fees. In a direct challenge to the LSE, PLUS is also introducing an initially cost-free regulatory approval process for investment firms wishing to join.
PLUS is charging £40 a month end-user fees and is introducing fees on volume execution, and will charge up to five per cent on share trades by participants with a ‘liquid order book’, with discounts of up to 100 per cent available for active dealers. That compares with a minimum 12.5p and a maximum £11.72p at the LSE.
The same charges apply at PLUS for trades in less liquid shares, compared with 6p at the LSE. Registration for market makers will be free against the LSE’s charge of £20 per share per month, while annual distribution licence fees of £25,000 compare with £4,000 at the LSE.
Headed by the ambitious Simon Brickles, PLUS trades at 23.25p, with a £73.2 million value, against a 4.5p low in 2004 and a 38.75p high last year. The omens look relatively favourable.
