Ever wondered why so many hot startups skip London’s public markets? The London Stock Exchange just received FCA approval for a game-changing private stock market solution. The Financial Conduct Authority approved LSE’s new PISCES private stock market platform this Tuesday – marking the world’s first regulated private stock market and giving UK investors access to shares in large private companies.
The FCA approval represents a “major milestone in our drive to boost growth and unlock capital investment,” creating unprecedented opportunities for private company share trading in Britain’s capital markets.
What Is the PISCES Private Stock Market Platform?
PISCES (Private Intermittent Securities and Capital Exchange System) is Britain’s groundbreaking regulated private stock market that allows investors to trade private company shares through intermittent trading events. Unlike traditional stock exchanges with continuous trading, this private market platform operates through scheduled auctions and limited trading windows.
The London Stock Exchange became the first FCA-approved operator to run PISCES trading events, with CEO Julia Hoggett calling it a “significant step” towards launching the private securities market this autumn. The platform will bring together buyers and sellers of shares in private companies to trade on an intermittent basis.
This regulated private market operates within a “regulatory sandbox” environment, allowing the FCA to test designs before finalising permanent rules in 2030.
Why London’s Capital Markets Desperately Need PISCES Private Trading
Britain’s public markets have been bleeding companies faster than ever. Too many firms are staying private longer or abandoning London for overseas exchanges, creating a critical funding gap in UK capital markets.
The new private stock market could generate a pipeline of companies for a full IPO on a public market in the future, whilst offering private companies a stepping stone to public listing. PISCES addresses the liquidity problem that has plagued private company shareholders, particularly employees stuck holding illiquid equity.
Economic Secretary Emma Reynolds highlighted that this represents “the latest significant milestone for PISCES” as part of the government’s commitment to enhancing UK capital markets offering and supporting economic growth.
How PISCES Private Company Share Trading Works
The PISCES private stock market platform allows private companies to set up trading auctions at regular intervals. Companies maintain control over investor access and can screen potential shareholders through registered auction agents approved by the LSE.
Private company equity owners who wish to sell stock can set up an auction on PISCES, which acts as both shop window and marketplace for investors seeking private market exposure. This creates liquidity opportunities without the full regulatory burden of public listing.
Key benefits include stamp duty exemption for PISCES trading events, reduced costs compared to traditional private placements, and access to the LSE’s existing trading infrastructure.
UK Private Companies Eyeing PISCES Launch
Industry insiders report significant interest from high-profile UK private companies. Revolut, Octopus Energy, and SME lender Oaknorth were among 24 firms that attended the LSE’s private PISCES conference this spring, suggesting strong potential participation from Britain’s most valuable private companies.
Simon Walls, executive director of markets at the FCA, said the approval marks the beginning of “a competitive market that gives greater investor access to exciting growth companies.”
The LSE plans to launch its private securities market later this year, with companies able to facilitate trading of their securities through the auction facility.
Impact on UK Private Market Investment
For retail and institutional investors, PISCES democratises access to private market returns previously reserved for venture capital firms and high-net-worth individuals. The regulated framework provides investor protections whilst maintaining flexibility for private companies.
For UK private companies, the platform offers employee liquidity solutions, investor base expansion, and market testing opportunities without full public listing requirements. PISCES should help privately-owned companies get used to regular financial reporting, transparency, and understanding that different stakeholders may own slices of their business.
The LSE positions this as creating a “genuine funding continuum from private to public markets,” supporting UK businesses across all growth stages and potentially boosting the IPO pipeline.
Private Stock Market: The Bottom Line
After years of watching promising companies slip away to private markets or overseas exchanges, London finally has a regulated solution. The PISCES private stock market platform won’t solve everything overnight, but it represents exactly the kind of capital markets innovation Britain needs.
Whether enough quality UK private companies participate and investors show genuine appetite for intermittent private share trading will determine if this world’s first regulated private market can help London reclaim its position as Europe’s startup capital. The FCA’s approval of the LSE as the first PISCES operator marks a significant milestone in UK financial market evolution.
Private Stock Market FAQ
Q1: When will the PISCES private stock market platform officially launch?
A: The LSE targets autumn 2025 for the PISCES launch following FCA approval. The exact launch date depends on private companies completing preparations for the regulated platform and finalising auction arrangements.
Q2: How does PISCES private trading differ from public stock exchanges?
A: Unlike continuous public market trading, PISCES offers intermittent private company share trading through scheduled auctions and limited trading windows. It’s specifically designed for private market liquidity without full public listing requirements.
Q3: Can retail investors access PISCES private company shares?
A: Yes, the regulated platform aims to democratise private company share trading for retail investors, though registered auction agents will assess investor eligibility and may place trades on their behalf for specific trading events.
Q4: Which UK private companies will use the PISCES platform?
A: Large UK private companies, particularly tech startups and scale-ups seeking liquidity solutions without full public listing. Major firms like Revolut, Octopus Energy, and Oaknorth have expressed interest in the platform.
Q5: What are the key benefits of PISCES for private companies?
A: PISCES offers stamp duty exemption, reduced costs versus private placements, employee share liquidity, investor base expansion, and a potential stepping stone to full IPO whilst maintaining private company status.
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Effective Date: 15th July 2025
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