Private stock market Pisces moves forward as consultation launched
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A new UK stock exchange where people can trade shares in private companies is moving closer, after officials published details on how it could operate. Regulators are consulting on the new market, called Pisces, for which ministers will legislate next year.
Pisces will allow investors to trade shares in private firms in a style similar to a public exchange like the FTSE 100. It was introduced by the last Conservative government in a bid to breathe new life into London’s struggling stock market system. The Financial Conduct Authority said on Tuesday that it will give people more confidence to invest in smaller companies.
In turn, those companies will get more access to funding which will help them expand. Pisces will be open to professional investors, and select retail traders like high net worth individuals and employees of participating private firms will also be included.
Normal retail investors will not be able to take part at first. Tulip Siddiq, Economic Secretary to the Treasury, said it is a “significant step forward” in Labour’s plans to reform markets. “It will give investors the chance to get in on the ground floor of some of the most exciting companies and support the growth of those businesses.”.
Last month, Chancellor Rachel Reeves announced plans for the market in her maiden speech at Mansion House. Pisces stands for Private Intermittent Securities and Capital Exchange System. The FCA said it is inviting views from potential participating companies and finance firms on how to regulate the market.
