PLUS Markets has become a Recognised Investment Exchange (RIE) and is set to expand its operations significantly.

The decision by the Financial Services Authority to award RIE status to PLUS Markets, which applied for it last year, marks an important milestone for the share trading market, which began life 12 years ago as the private Ofex facility. PLUS now has the same status, rights and privileges as the London Stock Exchange and its junior AIM market and can compete with them to attract investment institutions that are either obliged or prefer to deal only on an officially recognised exchange.

PLUS is operated by AIM-quoted PLUS Markets Group (PMG), whose chief executive Simon Brickles, a former head of the AIM team, has already spearheaded substantial expansion. As well as running its own PLUS market for young companies hoping to grow, PMG now provides a trading platform for many LSE-listed companies.

RIE status now allows PLUS to expand its role as a primary capital-raising market to a wider range of issuers. PMG is soon to open a new ‘PLUS-listed market’, which issuing companies can join in parallel to the LSE Official List.

Being a Recognised Investment Exchange also classifies PLUS as a ‘market operator’ under the European Union’s MiFID directive. This will open it to new overseas sources of capital.

By opening PLUS to new heavyweight participants, RIE status should improve the market’s liquidity, hitherto frequently cited as its chief drawback. That would encourage more companies to list and create a virtuous circle.

PMG’s shares perked up 3.25p this morning to 30.75p and could make more progress if the RIE award does produce these hoped-for results.