Key Takeaways
- • The Financial Conduct Authority approved the London Stock Exchange as the first operator of a PISCES (Private Intermittent Securities and Capital Exchange System) platform on 26 August 2025, establishing the world's first regulated private stock market for bilateral share trading in private companies.
- • JP Jenkins became the second FCA-approved PISCES operator in November 2025, with the regulator stating that multiple operators will boost competition and drive investor opportunities in the private securities trading space.
- • PISCES platforms operate through intermittent trading windows (monthly, quarterly, biannually, or ad hoc) set by participating companies, allowing private firms to access liquidity, test valuations, and reward shareholders without the disclosure burdens and costs of public listing.
- • Investor access is restricted to institutional investors, high-net-worth individuals, sophisticated investors, and employees of participating companies, with companies retaining control over share price floors, ceilings, and shareholder composition.
- • The regulatory framework operates within a sandbox model under the Financial Services and Markets Act 2023, with the FCA expected to finalize permanent regulations by 2030, designed to address the trend of companies staying private longer while unlocking capital investment for UK growth firms.
Summary
The FCA's approval of the London Stock Exchange as the first PISCES operator represents a landmark development in UK capital markets reform, establishing the world's first regulated private stock market designed to facilitate secondary trading in private company shares. The LSE received its Approval Notice on 26 August 2025, enabling it to conduct intermittent trading events for eligible private companies under modified regulatory requirements tailored to the private market context. The regulatory framework deliberately avoids imposing the disclosure and compliance obligations of public markets, recognizing that such burdens would be disproportionate for private companies seeking periodic liquidity events rather than continuous trading.
PISCES addresses a structural gap in UK capital markets created by the extended private lifecycle of growth companies. As firms choose to remain private longer, institutional investors and high-net-worth individuals lack efficient mechanisms to trade stakes in these companies. The platform solves this by connecting buyers and sellers during designated trading windows, allowing companies to set the frequency and timing of auctions while maintaining control over valuation parameters and investor access. Private companies benefit from testing market valuations, raising capital, and providing exit opportunities for early shareholders and employees without the regulatory and financial costs of traditional initial public offerings.
The competitive landscape expanded significantly when JP Jenkins, a UK unlisted assets specialist, won FCA approval as the second PISCES operator in November 2025. The regulator explicitly stated that multiple operators would enhance competition and create broader investor opportunities. JP Jenkins, which operates a network connecting brokers and buyers of unlisted assets, immediately began discussions with prospective users. CEO Mike McCudden emphasized the platform's role in "opening up the private markets, bringing in new capital and allowing these companies and their investors to access liquidity."
Access to PISCES platforms is deliberately restricted to sophisticated market participants: institutional investors, high-net-worth individuals, sophisticated investors, and employees of participating companies. This tiered access model protects less-sophisticated retail investors while enabling institutional capital to reach private companies efficiently. The FCA emphasizes that investors receive risk disclosure information to support informed decision-making.
The PISCES initiative operates within a regulatory sandbox created by the Financial Services and Markets Act 2023 (Private Intermittent Securities and Capital Exchange System Sandbox) Regulations 2025. This controlled environment allows the FCA to test the market design before establishing permanent regulations scheduled for 2030. According to FCA Executive Director Simon Walls, PISCES represents "bold risk-taking" aligned with the UK's objective to strengthen its position as a leading global financial centre. Government and FCA officials frame PISCES as a critical component of broader capital markets reform designed to retain UK-listed companies, stem outflows to offshore markets, and unlock capital for private growth firms.
PISCES addresses a structural gap in UK capital markets created by the extended private lifecycle of growth companies. As firms choose to remain private longer, institutional investors and high-net-worth individuals lack efficient mechanisms to trade stakes in these companies. The platform solves this by connecting buyers and sellers during designated trading windows, allowing companies to set the frequency and timing of auctions while maintaining control over valuation parameters and investor access. Private companies benefit from testing market valuations, raising capital, and providing exit opportunities for early shareholders and employees without the regulatory and financial costs of traditional initial public offerings.
The competitive landscape expanded significantly when JP Jenkins, a UK unlisted assets specialist, won FCA approval as the second PISCES operator in November 2025. The regulator explicitly stated that multiple operators would enhance competition and create broader investor opportunities. JP Jenkins, which operates a network connecting brokers and buyers of unlisted assets, immediately began discussions with prospective users. CEO Mike McCudden emphasized the platform's role in "opening up the private markets, bringing in new capital and allowing these companies and their investors to access liquidity."
Access to PISCES platforms is deliberately restricted to sophisticated market participants: institutional investors, high-net-worth individuals, sophisticated investors, and employees of participating companies. This tiered access model protects less-sophisticated retail investors while enabling institutional capital to reach private companies efficiently. The FCA emphasizes that investors receive risk disclosure information to support informed decision-making.
The PISCES initiative operates within a regulatory sandbox created by the Financial Services and Markets Act 2023 (Private Intermittent Securities and Capital Exchange System Sandbox) Regulations 2025. This controlled environment allows the FCA to test the market design before establishing permanent regulations scheduled for 2030. According to FCA Executive Director Simon Walls, PISCES represents "bold risk-taking" aligned with the UK's objective to strengthen its position as a leading global financial centre. Government and FCA officials frame PISCES as a critical component of broader capital markets reform designed to retain UK-listed companies, stem outflows to offshore markets, and unlock capital for private growth firms.
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