The Financial Conduct Authority has given the London Stock Exchange approval to operate a new Pisces private stock market, paving the way for the marketplace’s debut later this year.
The City regulator confirmed on Tuesday that London’s premier stock exchange had become the first operator to secure authorisation to run Pisces – a platform that will enable investors to trade shares in major private companies on an intermittent basis.
The regulator’s approval removes one of the final operational obstacles in launching the eagerly anticipated scheme this autumn and was welcomed by London Stock Exchange (LSE) chief Julia Hoggett as a “significant step” towards making it operational.
“We are delighted to be the first venue operator to have been granted a PISCES Approval Notice by the FCA,” she said.
“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.”, as reported by City AM.
Pisces – an acronym for Private Intermittent Securities and Capital Exchange System – was initially proposed by the Treasury over two years ago as a method of enhancing liquidity in private markets and encouraging major start-ups and scale-ups to list in London.
LSE courts start-up heavyweights for Pisces launch Last month, City AM disclosed that Revolut, Octopus Energy and SME lender Oaknorth were amongst two dozen companies contemplating market participation following attendance at a private conference organised by Ms Hoggett and the LSE this spring.
The marketplace has been promoted as a possible remedy to enterprises choosing to remain privately held for extended periods, depriving London’s struggling exchange of fresh participants as it fights to halt an exodus into private ownership or towards the US. Concurrently, Treasury and FCA representatives anticipate private enterprises will utilise Pisces as a prospective bridge to public listing, whilst simultaneously enabling dealmakers to release capital for subsequent reinvestment in additional start-ups.
City minister Emma Reynolds declared the FCA’s approval signifies the “latest significant milestone for PISCES”, stating: “I look forward to seeing the first PISCES trading events.
“This new market demonstrates our commitment to the creation of a genuine funding continuum from the private to public markets so that businesses in the UK and around the world can be effectively supported across all stages of their growth,” Ms Hoggett remarked.
“We look forward to welcoming the first private companies to utilise the market when they have completed their preparations and to expanding the options they will have to realise their ambitions.”
