The FCA has today approved the London Stock Exchange to operate a PISCES platform, a new type of private stock market designed to attract HNW investors and others. 

PISCES stands for The Private Intermittent Securities and Capital Exchange System.

The platform will bring together buyers and sellers of shares in private companies to trade on an intermittent basis.

It will be delivered through a sandbox, the FCA said, to allow it to test the design before finalising a permanent regime in 2030.

The FCA revealed the final rules for the new type of private stock market in June.

Trading systems could include periodic auctions, as well as occasional and time-limited periods of continuous trading, the regulator said.

Access to PISCES will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions.

Simon Walls, executive director of markets at the FCA, said approving the first Pisces operator, “marked a major milestone in our drive to boost growth and unlock capital investment.

“We are looking forward to seeing the first transactions, seeding a competitive market that gives greater investor access to growth companies."

Julia Hoggett, CEO at the London Stock Exchange plc, 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. 

“The 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.”

She said private companies will be able to utilise the market when they have completed their preparations.

Firms wishing to run a PISCES platform have to apply to the FCA, and once approved are able to run intermittent trading events.