The Financial Conduct Authority (FCA) has approved the London Stock Exchange (LSE) to operate a Private Intermittent Securities and Capital Exchange System (PISCES) platform, a new type of private stock market.
The platform will bring together buyers and sellers of shares in private companies to trade on an intermittent basis. PISCES launches as the world’s first regulated private stock market, developed through collaboration between industry, government and regulators to drive innovative reform in the sector.
“We are delighted to announce the first PISCES operator has been approved, marking a major milestone in our drive to boost growth and unlock capital investment,” commented Simon Walls, executive director of markets at the FCA. “We are looking forward to seeing the first transactions, seeding a competitive market that gives greater investor access to exciting growth companies.”
Nod of approval
The LSE is the first venue operator to receive a PISCES Approval Notice from the UK regulator.
Julia Hoggett, CEO at the London Stock Exchange plc, said: “This new market demonstrates our commitment to the creation of a genuine funding continuum from the private to public markets so that businesses in the UK and around the world can be effectively supported across all stages of their growth.
“We look forward to welcoming the first private companies to utilise the market when they have completed their preparations and to expanding the options they will have to realise their ambitions.”
Emma Reynolds, Economic Secretary to the Treasury, also added: “This government is committed to working with the regulators and business to enhance our capital markets offering, supporting economic growth, and putting more money in working people’s pockets as part of our Plan for Change.”
The PISCES platform will be delivered through a financial markets infrastructure (FMI) sandbox, which enables the FCA to test the design before finalising a permanent regime, expected in 2030. Trading may take place through periodic auctions or limited windows of continuous trading. The Treasury laid the legislative framework earlier this year, paving the way for today’s approval.
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