Britain's financial regulator announced final rules today for a new type of stock market that will allow trading in shares of private companies, marking the culmination of a reform effort aimed at revitalizing the country's capital markets.
The Financial Conduct Authority said the Private Intermittent Securities and Capital Exchange System, known as PISCES, will launch later this year after regulators finalize testing through a regulatory sandbox that opened for applications in recent weeks. The platform represents the most ambitious attempt yet to bridge the gap between private and public markets as companies increasingly choose to remain private for longer periods.
PISCES will operate as an intermittent trading venue where private companies can offer shares to investors during scheduled events rather than through continuous trading12. Companies retain control over key aspects of these transactions, including setting price floors and ceilings and determining which investors can participate in their share sales1.
Access will be restricted to institutional investors, high-net-worth individuals, sophisticated investors, and employees of participating companies1. The government has exempted PISCES transactions from stamp duty, similar to shares traded on the Alternative Investment Market13.
"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," said Simon Walls, executive director of markets at the FCA1.
The initiative forms part of a broader government strategy to strengthen Britain's position as a global financial hub amid increased competition from venues like the Nasdaq Private Market in the United States12. Chancellor Rachel Reeves committed to establishing PISCES by May 2025 during her Mansion House speech in November, building on proposals initially developed by the previous Conservative government13.
The platform addresses growing demand for liquidity in private markets as companies delay initial public offerings to avoid regulatory burdens associated with public listings4. According to the London Stock Exchange, the concept has attracted interest from private equity firms and companies across the United States, Europe, and Asia2.
Treasury regulations establishing the legal framework for PISCES came into force on June 5, following their publication in May12. The FCA will now begin accepting applications from prospective platform operators, with the first trading events expected this autumn34.
The sandbox will run until June 2030, allowing regulators to test and refine the framework before determining whether to make it permanent52.
"PISCES is a great example of industry, regulators and the government working together to go further and faster on innovative reforms," said Emma Reynolds, economic secretary to the Treasury6.
