Introduction
Britain is set to launch a new share trading platform for private companies this year, aimed at enhancing the UK's capital markets, according to the financial watchdog.Context
The Private Intermittent Securities and Capital Exchange System (PISCES) will facilitate the trading of shares in unlisted companies. The platform is scheduled to begin trading later this year through a "sandbox" initiative that allows regulators to test its functionality before establishing a permanent framework by 2030, as announced by the Financial Conduct Authority (FCA).Developments
PISCES aims to bridge the gap between owners of emerging unlisted companies seeking to sell shares and investors eager to support their growth. Simon Walls, the FCA's executive director of markets, emphasized that this new platform would provide investors with increased access and confidence to invest in promising companies while allowing early investors and employees to divest and reinvest.Emma Reynolds, the government's economic secretary to the Treasury, expressed her support for PISCES, noting its potential to enhance UK capital markets and stimulate economic growth.
To operate on the PISCES platform, companies must apply for FCA approval. Once granted, they will conduct intermittent trading events, where owners can offer shares for sale at their chosen prices to prospective shareholders. This initiative could assist small businesses with limited experience in capital markets in attracting affluent investors without needing to pursue a full initial public offering.
However, the PISCES concept faces skepticism within certain sectors of the UK industry. Bankers have indicated concerns about potential revenue declines and the possibility of being outpaced in a thriving market for private capital.