PLUS Markets Group, a UK exchange specialising in small- and mid-cap stocks, is planning an incentive scheme for market makers in a bid to attract more equity trading volume.
The incentive, called the PLUS Liquidity Scheme, aims to encourage market makers to direct flow to PLUS by allowing them to share in a proportion of data sale revenues. Rewards under the scheme will be calculated with reference to market maker flow levels.
“The capability for market makers to direct all reported flow to PLUS, including for AIM stocks, completes our small- and mid-cap product offering,” said Simon Brickles, the exchange’s CEO, in a statement. “The PLUS Liquidity Scheme is an exciting new initiative which will attract more volume to PLUS and reward market makers as they share in our success.”
Following the resolution of a dispute with the London Stock Exchange (LSE), PLUS can now trade all 1,600 stocks listed on the LSE’s AIM growth market. It was previously restricted to trading around 90 names that had elected to be dual-traded on the two exchanges.
PLUS will release more details about the incentive scheme in the coming weeks.