Plus Markets has struck a deal with a regional German exchange to develop a new Europe-wide listing and trading platform for small and mid-cap shares, the first of its kind according to the UK exchange, that could grow to challenge London's junior Alternative Investment Market for fledgling stocks.

London-based Plus has reached “a non-binding heads of agreement” with the operator of the Munich Stock Exchange, the Bayerische Börse, to develop a new listing and trading system for small and mid-cap European companies looking to tap London-based investors.