LSE plans 'are bid to curb Ofex'
THE London Stock Exchange has been accused of attempting an 'anti-competitive manoeuvre' by changing its AIM listing rules so that they will damage its new upstart rival.
Plus Markets Group, which owns Ofex and only recently began trading in AIM shares, said the LSE had singled it out by creating new rules for AIM companies that are listed on a third-party trading platform.
It claimed the changes are planned because of the early success of its service, which it said has already begun attracting volume trading in small and medium-sized stocks that are fully-listed but outside the FTSE 350. It claimed the Exchange became more worried when it moved into trading AIM stocks last month.
Simon Brickles, chief executive of PMG, said: 'We will be taking steps to defend our freedom to compete in this marketplace and the freedom of investors to execute trade in a market of choice. We have referred this matter to our lawyers and we are already in an advanced stage in planning our response.'
Among several rule changes the LSE has put forward are that AIM companies' advisers must tell it when trading on a third-party platform shows higherthan-usual volumes or when the price is 5% or more away from the price seen on the LSE's own platform.
It said it was proposing the changes 'to ensure that the AIM rules take priority over the equivalent obligations the AIM company owes to the operator of a third party trading platform'.
Brickles said: 'The LSE is clearly frightened of our early success in attracting market volumes. We have been aware informally that they were considering introducing rule changes. Over the last few months, we have approached the LSE for an open dialogue on this subject but received no satisfactory response.'
He has written to the LSE asking for a formal response and explanation of the planned rule changes which he said were 'anti-competitive, in restraint of trade and unjustified'.
Brickles used to head the AIM team at the LSE before he was recruited by Ofex to beef up its trading. He rebranded the business and launched the new trading platform two years ago.
About 18 smaller-company brokers use and are shareholders in the business.
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