PLUS MARKETS SEEKS LIBERALIZATION OF AIM SECURITIES TRADING THROUGH SUIT AGAINST LSE

Posted September 25, 2008

NEW YORK – In the competition between market venues falling outside the purview of the Markets in Financial Instruments Directive (MiFID), a newer small and mid-cap market, Plus Markets, is suing the London Stock Exchange (LSE) charging anti-competitive behavior. Plus Markets’ specific challenge to the LSE is its rule requiring trades in Alternative Investment Market (AIM) securities to be reported to the LSE.

“The AIM market has its own set of rules and is not covered under MiFID,” observes Miranda Mizen, Senior Consultant at The Tabb Group. “The proceedings will be watched with interest as they showcase the leverage of MiFID in the national courts by a rival demanding the right to compete.”

Also at issue is that MiFID, unlike US regulation, is more of a framework, lacking a common rule book, according to Mizen. “That MiFID is both a European directive and national law will not prevent exchanges from trying to protect market share by any means possible,” she says. “There is a lot at stake as the dominant position of exchanges is challenged by new rivals on every front.”

Plus Markets is also teaming with the Munich Exchange while pursuing liberalization of trading in AIM securities, Mizen notes.