Private stock market Pisces moves a step closer as consultation launched

A pioneering UK stock exchange designed for trading shares in private companies is edging closer as officials lay out operating plans. Named Pisces , this new market is set to be legislated for next year by ministers and aims to emulate public exchanges like the FTSE 100, catering to a trading style of private firm shares. Conceived under the previous Conservative leadership, the initiative seeks to revitalise the flagging fortunes of London's stock markets.

The Financial Conduct Authority (FCA) shared on Tuesday that it anticipates Pisces will bolster investor confidence in smaller businesses, which will lead to greater funding opportunities and growth prospects for those companies. Although primarily aimed at professional investors, eligible retail participants such as affluent individuals and employees of listed firms will have access. Regular retail investors, however, will initially be excluded from partaking.



Economic Secretary Tulip Siddiq hailed the development as a "significant step forward" in Labour's strategy for market reform, asserting that "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." The announcement follows last month's revelation from Chancellor Rachel Reeves declaring the plans during her inaugural address at Mansion House. Pisces represents the Private Intermittent Securities and Capital Exchange System.

The FCA has opened the floor for feedback from interested companies and financial institutions on the best ways to regulate the market. The consultation period is set to conclude on February 17. Simon Walls, the FCA's interim executive director of markets, commented: "Next year we will ring the bell on a new private stock market that could transform how private companies access funds and grow.

"It will offer investors more access and a greater confidence to invest in private companies and could act as a stepping stone to public markets for those firms." “We want to work with industry and ensure we have the right building blocks in place to support investment in growing companies.” Dame Julia Hoggett, chief executive of the London Stock Exchange, praised the initiative, calling it "a truly innovative and tailored framework that supports the funding continuum across public and private markets".

Meanwhile, Labour has suggested additional reforms, such as the creation of 'pension megafunds' aimed at enhancing returns for British savers. The Chancellor is looking to amalgamate several large pension funds, including the 86 local government schemes, into these megafunds. This approach would emulate successful models found in Australia and Canada, where large pension funds leverage their size to invest in assets with higher growth potential.

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