Reuters: Regulatory News: Shareholders support PLUS exchange sale

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Shareholders support PLUS exchange sale Jun 18th 2012, 11:36 By Luke Jeffs LONDON, June 18 | Mon Jun 18, 2012 7:36am EDT LONDON, June 18 (Reuters) - PLUS Markets Group shareholders have backed the sale of its loss-making stock market to broker ICAP, which wants the business as a launchpad into futures trading. European listed derivatives business is dominated by NYSE Euronext and Deutsche Boerse, but regulators are keen to encourage competition and plan to open up the market, which should pave the way for new entrants such as ICAP. PLUS shareholders, some of which made clear their opposition to the deal in recent weeks, voted on Monday to allow the sale of PLUS Stock Exchange (PLUS-SX) at an extraordinary general meeting in London. About 63.8 percent of PLUS shareholders, the largest of which are Close Brothers and Amara Dhari Investments, voted for the deal, which will net investors in the region of 640,000 pounds ($1 million). Some shareholders opposed the deal because they think the plan offers hefty rewards for PLUS senior managers, who are supporting the sale, but little for investors. The deal includes a payout of 423,000 pounds to PLUS Chief Executive Cyril Theret and financial director Nemone Wynn-Evans. ICAP, which initially bid a nominal 1 pound for the exchange, last week increased its offer by 500,000 pounds "to insulate shareholders from the costs of certain contractual payments triggered by the sale of PLUS". The broker and PLUS had also stressed that Britain's market regulator, the Financial Services Authority, would revoke PLUS's exchange licence if the ICAP deal was not completed by Thursday. ICAP wants PLUS-SX, a regulated exchange, to serve as a platform for its planned move into European futures and options trading. Link this Share this Digg this Email Reprints

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