A new type of private stock market
will be launched later this year after the Financial Conduct
Authority (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.”
, 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 pocket 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.”
Notes to editors
-
The platform will be delivered
through a sandbox, which will allow the FCA to test the design
before finalising a permanent regime in 2030. The sandbox is
now open, with shares likely to be traded later this
year. Trading systems could
include periodic auctions, as well as occasional and
time-limited periods of continuous
trading.
-
PISCES will be developed using a
“financial markets infrastructure (FMI) sandbox”. This will be
the second use of the FMI Sandbox powers after the
Digital Securities
Sandbox.
-
The Treasury laid a Statutory Instrument before Parliament in May 2025 which finalised the
legislative framework for PISCES.
-
The sandbox environment will allow
government and regulators to check it is working
properly.
-
Firms wishing to run a PISCES
platform will have to apply to the FCA, and once approved will
be able to run intermittent trading events. The FCA
published pre-application support and application support for firms interested in applying to be a PISCES
operator.
-
The regulator and government will
use any lessons from the sandbox period to improve the regime
before making it permanent.
