The UK Government has established the legal framework for the Private Intermittent Securities and Capital Exchange System (PISCES) stock market system.
Stock markets will be able to launch Private Intermittent Securities and Capital Exchange System (PISCES) platforms “in the coming months, with shares likely to be traded in the Autumn,” the Treasury stated.
Through PISCES, which allows for the intermittent trading of private company shares, UK authorities aim to provide more liquidity to early-stage companies and increase capital market engagement.
Speaking at TradeTech on 14 May, Jon Relleen, director of infrastructure and exchanges, supervision, policy and competition for markets at the Financial Conduct Authority, discussed the introduction of PISCES amid the growth of private markets.
“Increased activity in private markets has been helpful. Lots of money has been flowing through to companies. We don’t want to see it as a competition between public and private markets. What we ultimately care about is the ability for companies to raise funds, promote growth and innovation, and invest.”
Earlier this year, a report from New Financial and HSBC noted that more than US$1 trillion had been lost to private markets within the last decade.
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“We’re very conscious that we don’t want these kinds of cliff edges between public and private markets. PISCES has been about reducing that. We understand there is a demand for a regulated marketplace around some second market transactions in the private space.”
Full rules will be published by the FCA once legislation comes into force.
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Employees who have share options in their company through an enterprise management incentive (EMI) or company share option plan (CSOP) will be able to trade their shares on PISCES, Exchequer Secretary to the Treasury James Murray confirmed. Initially proposed in the 2025 Spring Statement, this will allow employees to retain tax advantages.
“[This will] boost the attractiveness of the product to high growth companies looking to expand,” noted Emma Reynolds, economic secretary to the Treasury.
Julia Hoggett, CEO of the London Stock Exchange, which developed PISCES, commented: “We look forward to launching our Private Securities Market, utilising the PISCES framework. This will provide private companies and their shareholders with further options to access liquidity, and investors the opportunity to invest in a broad range of high-growth private companies.”
PISCES transactions will also be exempt from stamp duty and stamp duty reserve tax, as confirmed in the 2024 Autumn Budget.
“These are important milestones in delivering the Government’s plan to go further and faster to drive economic growth through the Plan for Change, by supporting private companies to scale and grow, by providing a stepping stone to public markets, and supporting our world leading capital markets,” Murray concluded.
