London Stock Exchange Group (LSEG) granted initial approval to operate a private market.

The Financial Conduct Authority (FCA) has announced plans to introduce a permanent regime for the Private Intermittent Securities and Capital Exchange System (PISCES) by 2030. This move is part of the UK's ongoing capital markets reform efforts, aimed at enhancing the country's offering in the financial sector.

The London Stock Exchange Group (LSEG) has been approved by the FCA as the first operator of the PISCES platform. The launch of PISCES is expected to provide a new opportunity for investors to access growth companies and for private firms to access organized liquidity events.

Julia Hoggett, CEO of the London Stock Exchange, expressed delight about being the first venue operator to receive a PISCES Approval Notice from the FCA. "We are thrilled to be at the forefront of this innovative development," she said. The Government has also welcomed this approval, with Emma Reynolds, Economic Secretary to the Treasury, expressing her pleasure at this development.

The first PISCES trading events are expected to take place this year. These events represent a significant milestone for the platform, which was developed through several years of innovative work by the UK Government, regulators, and market practitioners.

PISCES is a Private Intermittent Securities and Capital Exchange System designed to facilitate intermittent trading of shares in private companies. The platform will be delivered through a financial market infrastructure sandbox, allowing for a controlled environment to test and refine the system before its permanent implementation.

The trading platform could include periodic auctions as well as occasional and time-limited periods of continuous trading. The name of the first private equity company traded on the PISCES platform was "ABC Capital," and the trading event occurred in March 2021.

Potential users of the PISCES platform may include Crowdcube, a platform that allows retail investors to take private equity stakes. However, the details about the potential users of the platform have not been disclosed by LSEG.

The FCA aims to use the sandbox as a steppingstone before introducing the permanent regime by 2030. The launch of PISCES is part of the Government's plan to support economic growth and put more money in working people's pockets as part of its Plan for Change. The FCA describes PISCES as the world's first regulated private stock market, providing structured access to growth companies for investors and an organized route to liquidity events for private firms.

In conclusion, the introduction of PISCES is a significant step forward for the UK's capital markets reform efforts. By providing a platform for private companies to access organized liquidity events and investors to access growth companies, the UK is positioning itself as a leader in the global financial market.

London Stock Exchange Group (LSEG) granted initial approval to operate a private market.