On 26 August 2025, the United Kingdom Financial Conduct Authority (UK FCA) published a press release stating that it has approved the London Stock Exchange plc (LSE) as the first operator of a Private Intermittent Securities and Capital Exchange System (PISCES) platform. PISCES represents the world’s first regulated private stock market, designed to allow buyers and sellers of shares in private companies to trade on an intermittent basis. The approval marks a significant step in the UK’s drive to reform its capital markets, expand funding options for growth companies, and create a seamless continuum between private and public markets. The FCA confirmed that PISCES platforms will initially operate within the Financial Market Infrastructure (FMI) Sandbox, with a permanent regime expected in 2030.
FCA’s Regulatory Framework for PISCES Platforms
The UK FCA stressed that PISCES platforms will be governed under the FMI sandbox powers introduced by the UK Treasury, following the Statutory Instrument laid before Parliament in May 2025. This framework allows the regulator to test trading models and system design before embedding permanent regulatory requirements. Trading events may take the form of periodic auctions or limited periods of continuous trading, ensuring flexibility while maintaining investor protection. Firms seeking to operate PISCES platforms must apply for UK FCA approval, with the regulator offering pre-application and application support to facilitate market entry.
Industry and Government Collaboration on Market Innovation
Simon Walls, UK FCA Executive Director of Markets, described the approval as “a major milestone in our drive to boost growth and unlock capital investment.” He underlined the regulator’s expectation that PISCES will seed a competitive marketplace and expand investor access to high-growth private companies. Julia Hoggett, CEO of the LSE, highlighted that the approval reflects years of collaborative work between industry, government, and regulators, and confirmed that the LSE will launch its Private Securities Market later in 2025. She noted that the new market structure is designed to support companies “across all stages of their growth.”
Emma Reynolds, Economic Secretary to the Treasury, welcomed the approval, calling it “the latest significant milestone for PISCES.” She emphasised that the initiative aligns with the UK Government’s Plan for Change to enhance capital markets, support economic growth, and improve returns for working households.
Legal and Market Implications
The approval of the LSE as the first PISCES operator signals a fundamental innovation in the UK’s securities framework. While private markets have historically operated without regulated secondary trading venues, the FCA’s sandbox approach introduces regulatory oversight while allowing for experimental flexibility.
For issuers, PISCES provides a route to raise liquidity and broaden shareholder bases before pursuing a public listing. For investors, it offers structured access to high-growth companies in a regulated environment, bridging a gap long criticised in UK capital markets. By 2030, when a permanent regime is expected, PISCES could reshape how private equity, venture-backed companies, and institutional investors interact with secondary markets.
Conclusion: PISCES and the Future of UK Capital Markets
The UK FCA’s willingness to balance innovation with oversight creates a blueprint for how intermittent private trading systems might evolve worldwide. Market participants, including issuers, investors, and legal advisers, should closely watch the rollout of the Private Securities Market later in 2025 as the next step in the UK’s capital markets reform journey.
(Source: https://www.fca.org.uk/news/press-releases/first-pisces-operator-gets-greenlight-drive-growth)
