PLUS Markets Group PLC
08 May 2006




Press release, 8 May 2006



*          Study shows PLUS beats SETSmm
*          Quote driven flexibility facilitates improvement over the order book
*          #1billion value traded on PLUS since launch

Significant benefits to users of Plus Markets Group plc's PLUS trading service
over SETSmm have been quantified in an independent academic research study
conducted by City University's Cass Business School. When faced with a choice of
execution platforms - PLUS and SETSmm - data from both exchanges shows that
price improvement gains accrue to users of the PLUS platform at no significant
variation in cost.


The study was conducted by Ian Marsh, Professor of Finance at Cass Business
School and Panayotis Parpas, Department of  Computing, Imperial College London.
The study analysed all trade execution data on PLUS during February 2006
comparing them with SETSmm data for the same period. In total 23,769
transactions in 348 different stocks were analysed on five key issues:



-      Actual trade prices on PLUS were compared with quoted prices. This showed
an average price improvement (quoted prices to transactions) of around 77% per
cent.

-      Costs of trading on PLUS were calculated and showed an average of less
than 0.5%, almost exactly the same as the cost of trading on SETSmm.

-      Over 90% of actual PLUS transaction take place at or better than the best
offer price on SETSmm.

-      Almost 99% of PLUS transactions could have been executed immediately on
SETSmm on trades up to 2 normal market size ("NMS"). However over 3NMS this
falls to 65% - indicating comparably positive market depth for size on PLUS.

-      Where deals can be executed on PLUS and SETSmm the average gain from
doing so on PLUS was one third of one percent on deals up to 2NMS, rising to two
thirds of one percent over 2NMS. I.e. with a SETSmm mid-price datum of 300p PLUS
sellers would get 301-303p and buyers would pay 299-297p depending on size. For
even larger deals execution on SETSmm may not be possible.



Commenting on the result, Cyril Theret, Business Development Director at PLUS
Markets Group plc, said. "This report shows, for the first time, solid
statistical evidence of the measurable benefits of our quote driven system and
the flexibility inherent in it to deliver improved prices."



"Not only are fees lower on our market but the prices at which shares can be
bought are generally better. This shows that traditional stock exchanges are not
only open to competition but that competition is proving effective.  Investors
should check that their broker is a member of PLUS to ensure they are getting
the best service. "



Since the launch of the PLUS service in December 2005, 155,875 bargains worth
over #1 billion value, representing 1.84 billion shares traded, have been
executed through PLUS rather than through traditional exchanges.



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For more information contact: John Parry - Rostron Parry 020 7490 8062


Cass Business School


Notes to editors:



Cass Business School delivers innovative, relevant and forward-looking
education, training, consultancy and research. Located on the doorstep of one of
the world's leading financial centres, Cass is perfectly positioned to be the
intellectual hub of the City of London. Our dialogue with business shapes the
structure and content of all our programmes of study, our executive education
programmes and our research. Our MBA, Specialist Masters and Undergraduate
Programmes have a reputation for excellence in professional education.  Our
Executive MBA is ranked 10th in the world by the Financial Times.



Within Cass, CassExec has been creating and delivering executive education to
the world of business for more than 15 years. The disciplines we cover range
from finance and insurance through to leadership, corporate governance and risk.
At the heart of our success is the importance we place on working in partnership
with our clients to construct entirely bespoke programmes that truly meet their
business needs.



The school undertakes research of national and international significance and
supports almost 100 PhD students. Cass has the largest Finance Faculty and the
largest Actuarial Science & Statistics Faculty in Europe. Our finance research
is ranked 2nd in Europe and 4th in the World outside the US by Financial
Management Magazine and our insurance and risk research is ranked 2nd in the
world by the Journal of Risk and Insurance.



Cass is a place where students, academics, industry experts, business leaders
and policy makers can enrich each other's thinking. For further information
visit: www.cass.city.ac.uk or contact Caleb Hulme-Moir 0207 040 5147, 0786 670
7262




                      This information is provided by RNS
            The company news service from the London Stock Exchange
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