What's Happening?
The Financial Conduct Authority (FCA) has granted approval to the London Stock Exchange (LSE) to operate a Private Intermittent Securities and Capital Exchange System (PISCES) platform. This platform represents a new type of private stock market, designed to facilitate trading of shares in private companies on an intermittent basis. The PISCES platform is the first regulated private stock market globally, developed through collaboration between industry, government, and regulators. Simon Walls, executive director of markets at the FCA, expressed enthusiasm for the approval, highlighting its potential to boost growth and unlock capital investment. Julia Hoggett, CEO of the London Stock Exchange plc, emphasized the platform's role in supporting businesses at various growth stages, both in the UK and internationally.
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Why It's Important?
The approval of the PISCES platform by the FCA marks a significant development in the financial markets, offering a new avenue for capital investment. This initiative is expected to enhance investor access to growth companies, potentially leading to increased economic activity and innovation. By providing a regulated environment for trading private company shares, the platform could attract more investors, thereby increasing liquidity and funding opportunities for businesses. The move aligns with the government's commitment to strengthening capital markets and supporting economic growth, which could have positive implications for job creation and economic stability.
What's Next?
The PISCES platform will be implemented through a financial markets infrastructure sandbox, allowing the FCA to test its design before establishing a permanent regime, anticipated by 2030. Trading on the platform may occur through periodic auctions or limited windows of continuous trading. The legislative framework for the platform was laid earlier this year, setting the stage for its operational launch. As the platform becomes operational, it is expected to attract private companies seeking to utilize the market, expanding their options for growth and investment.
