The UK’s financial landscape is set for a significant shift with the launch of the Private Intermittent Securities and Capital Exchange System (PISCES) in 2025. The Financial Conduct Authority (FCA) has unveiled the final rules for this innovative private stock market, aiming to bridge the gap between private companies and a broader pool of investors.
PISCES addresses the growing trend of businesses choosing to remain private for longer, offering a regulated platform for trading shares in these companies. This new market will provide greater access to growth companies for institutional investors, high-net-worth individuals, and sophisticated investors, while also allowing employees of participating companies to trade shares.
Empowering Private Companies
One of the key features of PISCES is the level of control it grants to private companies. Businesses will have the ability to set trading parameters, such as:
- Determining floor and ceiling share prices
- Controlling who can buy their shares
- Deciding when their shares may be traded
This level of flexibility empowers private companies to manage their shareholder base and maintain control over their growth trajectory.
Source: Pexels Image
A Sandbox Approach
To ensure a smooth transition and thorough testing of the platform, PISCES will operate through a sandbox until 2030. This approach allows the FCA to refine the design and address any potential issues before finalizing a permanent regime. Trading systems within the sandbox may include periodic auctions and occasional periods of continuous trading, providing flexibility and adaptability to market needs.
Legislative Framework
The launch of PISCES follows the Treasury’s submission of a Statutory Instrument to Parliament in May 2025, solidifying the legislative framework for the new private stock market. Firms interested in operating a PISCES platform must seek approval from the FCA, ensuring regulatory oversight and investor protection.
As the UK financial market embarks on this transformative journey, PISCES holds the promise of unlocking new opportunities for private companies and investors alike. With the final rules now in place, the countdown to the launch of this innovative platform has begun, setting the stage for a new era of growth and investment in the UK’s private sector.
