Last checked at 7 Sep 2011 07:00
PLUS Markets Group plc
PLUS Markets Group plc announces further exchange innovation with new trading initiative
7 September 2011
PLUS Markets Group plc (the "Group") today announces the establishment of PLUS Trading Solutions Ltd ("PLUS-TS"), an innovative trading platform technology services provider enabling investment banks, brokers and trading venues to establish outsourced matching systems that are designed to be fully compliant with regulatory initiatives. These include MiFID II and European Market Infrastructure Regulation (EMIR), as well as enabling compliance with likely new categories of regulatory infrastructure.
Following the completion of a strategic review the Group is creating the next generation stock exchange by responding to new commercial and regulatory needs. The Group now operates three core businesses: PLUS Stock Exchange ("PLUS-SX") providing IPO and execution services, PLUS Derivatives Exchange ("PLUS-DX") responding to changes in the OTC derivatives markets, and PLUS-TS, a fully managed trading services company.
The Group confirmed in mid July 2011 that PLUS-DX had achieved operational readiness to trade its proprietary Swap Index Contracts ("SICs") and subsequently that it had received authorisation from the Financial Services Authority. Activity over recent weeks has focussed on signing up new members to PLUS-DX to allow trading to commence. The Group has been working closely with a number of prospective members and software providers to facilitate this process. The SIC not only responds to MiFID II and EMIR by bringing OTC trading closer to exchanges and centrally cleared, but also by providing capital efficient new products in response to the proposed changes in Basel III.
PLUS-TS expands the Group's status as a neutral next generation operator of a Recognised Investment Exchange with its regulatory and surveillance functions, bringing them together with a new low-latency, high-throughput exchange platform, PLUSMatch, to provide an outsourced matching service. This is fully hosted and managed by PLUS-TS for a competitive ongoing licence fee per deployment.
The existing PLUS1 trading and surveillance platform and its technology team are transferring to PLUS-TS, with PLUS-SX and PLUS-DX effectively becoming its first customers. PLUS-TS is a wholly-owned subsidiary of the Group, with an opportunity to syndicate out up to 49% of the equity to external shareholders based on demand and strategic fit.
PLUS-TS is the logical evolution of the Group's intention to launch a new lit book in 2011 by responding to the growing demand from market participants to segregate or create their own matching systems, in line with likely developments resulting from MiFID II and EMIR.
Cyril Th©ret, Chief Executive Officer of PLUS Markets Group plc, said: "The strategic review was designed to position the Group as the next generation stock exchange, competitively meeting the needs of a diverse group of market participants, and to be the first exchange to introduce real innovation to the market. The establishment of PLUS Trading Solutions, in conjunction with the ongoing evolution of our stock and derivative exchanges, is a further step towards achieving this aim.
"A lot of trading, compliance and IT heads are wrestling with the problems of understanding what regulatory changes will mean for them, and what they will have to do, and how much they will have to spend, to comply with those changes. The PLUS-TS offering aims to take all the problems away for a fixed fee and provides a comprehensive neutral fully managed `exchange-in-a-box' solution for all concerned."
For further information, please contact:
Cyril Th©ret 020 7429 7800
PLUS Markets Group plc
Alexander Dewar 0845 213 1010
Brewin Dolphin Limited (Nominated Advisor)
Jeff Watt 020 7324 5482
Greentarget (PR Enquiries)
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