ICAP announced on 31 October 2012 the launch of its ”ICAP Securities & Derivatives Exchange” (ISDX). This new listings venue for small and medium-sized companies is a rebranding of the PLUS Stock Exchange, which ICAP bought for a nominal amount in June 2012 (as we reported here).
As with the old PLUS Stock Exchange, ISDX will operate two markets:
1. The ISDX Growth Market, for small- and mid-cap companies from all industry sectors to achieve their ambition, and described by ISDX as:
“a proven source of equity finance for companies coming to a public market for the first time, as well as being an established venue for existing issuers to raise further funds. It provides wide exposure for companies within a marketplace dedicated to growth companies. The admission process and ongoing regulation are designed to meet the needs of smaller companies, allowing them to focus on running their business while helping to provide confidence to investors”.
2. The ISDX Main Board, an EU Regulated Market “serving the needs of companies and other issuers seeking cost-effective admission to trading through the UKLA’s Official List, or other European Competent Authority. A wide range of instruments are eligible for admission to the ISDX Main Board”.
ICAP’s immediate intention is that the new Exchange will offer increased liquidity to the market (by the addition of two leading market makers, Peel Hunt and Shore Capital) and ”a focus on increasing the quality of the companies listed on the exchange, including the introduction of a new admissions framework in 2013, to ensure stricter common standards for companies joining ISDX”.
ICAP Securities & Derivatives Exchange is a Recognised Investment Exchange under the Financial Services & Markets Act 2000.