LSEG becomes the inaugural operator of PISCES, the world’s first regulated private stock market, as the UK pushes capital markets reform.
The FCA has approved the London Stock Exchange (LSEG) as the first operator of a PISCES (Private Intermittent Securities and Capital Exchange System) platform
PISCES aims to enable buyers and sellers of shares in private companies to trade on an intermittent basis. The FCA described the approval as the creation of the world’s first regulated private stock market, designed to give investors structured access to growth companies while allowing private firms an organised route to liquidity events.
Julia Hoggett, CEO at the London Stock Exchange, said: “We are delighted to be the first venue operator to have been granted a PISCES Approval Notice by the FCA. Following several years of innovative development by the UK Government and regulators with active engagement from practitioners across the market, the London Stock Exchange has now taken a significant step towards the launch of our Private Securities Market later this year.”
While LSEG is tight-lipped about potential users of the platform, likely candidates may include Crowdcube that allows retail investors to take private equity stakes.
The Government also welcomed the announcement. Emma Reynolds, economic secretary to the Treasury, said: “I am pleased to see the London Stock Exchange become the first operator to receive approval from the Financial Conduct Authority to run PISCES trading events. This represents the latest significant milestone for PISCES, and I look forward to seeing the first PISCES trading events.
“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 platform will be delivered through a financial market infrastructure sandbox. The FCA aims to use it as a steppingstone before introducing the permanent regime by 2030. The trading platform could include periodic auctions as well as occasional and time-limited periods of continuous trading.
Read more: PISCES shares to trade this year as disclosure concerns linger
