Plus Markets, the quote-driven trading system for AIM-listed stocks, has signed a £6.7 million deal with Sweden's OMX for the supply of trading and market surveillance technology that will support a major expansion in the number of contracts traded on its platform.
Under the deal OMX will supply and implement an electronic dealing system and a market surveillance platform from Smarts. The contract also includes on-going technical support services for Plus Markets' new infrastructure.
Plus said in March that it was investing in "major additional infrastructure" and these costs will precede any additional revenue and will impact the company becoming profitable in the current year.
According to OMX, the total value of its order with Plus is at least £7.2m over "a number of years".
Plus says the new trading infrastructure will underpin its expansion plans, including taking its stock coverage into EU liquid shares. This will enable investment firms to meet the execution, reporting and transparency requirements of MiFID via Plus's on- and off- exchange quote-driven services.
Brian Taylor, chief financial officer, Plus Markets, says the OMX technology will help "provide firm foundations for the further substantial extension of our trading services to support some 5000 securities".
Plus has applied to the Financial Services Authority (FSA) for recognised investment exchange (RIE) status and expects to be classified as a market operator under MiFID and consequently to hold the requisite permissions to operate the full spectrum of EU regulated and exchange-regulated markets.
Taylor says the company is confident that Plus Markets will be "an ideal venue for investors to optimise their best execution opportunities".