UK FCA Approves Pisces Share Trading Scheme
- The Financial conduct Authority (FCA) has given the go-ahead for trading to commence later this year on new platforms designed for buying and selling shares in private companies.
- The Pisces scheme, initially proposed by the previous Conservative goverment in 2022 and supported by Labor's Rachel Reeves, was initially slated to launch in a limited capacity by...
- According to the FCA, Pisces will enable companies to "tap into a broader range of investors and asset managers" while also providing existing shareholders with avenues to sell...
The UK’s FCA greenlights new trading venues for private company stakes, a move set to revolutionize capital markets by allowing the buying and selling of shares in private companies. This “Pisces” scheme, which will begin trading later this year, aims to boost the London IPO pipeline and give companies greater control over their shareholders. The FCA believes these platforms will enhance investor access and confidence, allowing early backers and employees to liquidate their holdings. News Directory 3 reports that this initiative addresses the growing trend of companies seeking private capital, mirroring triumphant models like the Nasdaq Private Market. With reduced disclosure requirements and an experimental framework set untill 2030,discover what’s next for this innovative approach to investment?
UK Regulator Approves New Trading Venues for Private company Stakes
Updated June 10, 2025
The Financial conduct Authority (FCA) has given the go-ahead for trading to commence later this year on new platforms designed for buying and selling shares in private companies. This initiative,known as the Private Intermittent Securities and Capital Exchange System (Pisces),aims to bridge the gap between private and public markets,thereby strengthening the UK’s capital markets.
The Pisces scheme, initially proposed by the previous Conservative goverment in 2022 and supported by Labor’s Rachel Reeves, was initially slated to launch in a limited capacity by the end of the previous year. Now, the london Stock Exchange and other entities can apply to the regulator to operate these Pisces trading venues.
According to the FCA, Pisces will enable companies to “tap into a broader range of investors and asset managers” while also providing existing shareholders with avenues to sell their stakes. Simon Walls, executive director of markets at the regulator, stated that these new platforms will enhance investor access and confidence in investing in emerging companies, while also allowing early backers and employees to liquidate their holdings and reinvest.
The initiative seeks to address the increasing shift away from public markets toward private capital sources. Policymakers hope the plan will stimulate London IPOs by offering a funding source for rapidly growing companies not yet ready for flotation. In the U.S., the Nasdaq Private Market has facilitated trading in company shares as 2013, with nearly $7 billion in trades last year.
To enhance its appeal, the FCA’s final rules grant companies more control over who can purchase their shares. The regulator has also reduced disclosure requirements, including some financial forecasts and sustainability disclosures. Shareholders holding less than 25% of a company’s shares will remain anonymous.
Pisces will operate under an experimental framework until 2030, allowing for adjustments to the rules as needed.This new system for private company trading venues aims to provide greater access and liquidity in capital markets.
What’s next
The FCA will begin accepting applications from exchanges to operate Pisces venues, with trading expected to begin later this year.The regulator will monitor the performance of the platforms and make adjustments to the rules as needed during the experimental period.