A new type of private stock market will be launched later in 2025 after the FCA announced the final rules for its Private Intermittent Securities and Capital Exchange System (PISCES).
PISCES is a new type of platform where shares in private companies can be traded. It will open the door to more opportunities for investors, facilitating their access to growth companies. Private companies can tap into a broader range of investors and asset managers and PISCES offers exits for shareholders to sell up.
As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. PISCES meets this demand by allowing secondary trading of these shares. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares.
Access to PISCES will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions.
As set out in the FCA’s letter to the PM outlining the regulator’s approach to support growth, PISCES can unlock capital investment and liquidity.
Simon Walls, executive director of markets at the FCA, said:
‘This bold design rebalances risk, but it is bold risk-taking that made the UK the leading financial centre it is today. The new platforms will give investors greater access and confidence to invest in exciting new companies, while early backers and employees can sell up and invest again.
‘PISCES is the latest step in the FCA’s wide-ranging reforms to the UK’s markets to boost growth and competitiveness.’
Emma Reynolds, Economic Secretary to the Treasury, said:
‘PISCES is a great example of industry, regulators and the government working together to go further and faster on innovative reforms to strengthen UK capital markets, supporting economic growth and putting more money in people’s pockets as part of our Plan for Change.
‘I welcome the FCA’s announcement, which follows our legislation and opens PISCES to industry. This also builds on our announcements on a stamp taxes on shares exemption for PISCES transactions, and on employees retaining the tax advantages on eligible shares traded.’
Source: FCA
Myles Milston, CEO and co-founder at Globacap, which provides technology to private markets, said in an email to Markets Media:
“The UK has taken a big step towards unleashing billions in investment with the FCA publishing the final PISCES rules and opening applications to its world-class regulatory sandbox. The UK has long set the standard for innovative, forward-thinking regulation and this move unlocks a pathway to live-test new private markets infrastructure with real firms and investors in a safe, supervised environment.
“PISCES is a major win for high-growth UK firms, investors and the country’s economy. It will enable UK firms to access the capital they need while remaining private and avoiding the headache of an IPO. Investors will be able to deploy capital into dynamic, fast-growing UK firms and reap the returns. PISCES will supercharge private markets, spark innovation and fuel long-term economic growth.
“While it won’t deliver on the government’s ambition to revive public markets or restart the IPO engine and will accelerate the death of AIM, PISCES will help the UK build a world-class private markets ecosystem. PISCES will unlock new sources of capital, attract investment and future-proof the UK’s role as a global financial centre.
“Globacap intends to apply to the PISCES sandbox at the earliest opportunity with the aim of launching a PISCES venue in the near future that will help shape the future of UK capital markets.”
Source: Globacap
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