Following news that the London Stock Exchange been granted the first PISCES Approval Notice (PAN) by the Financial Conduct Authority (FCA) for its Private Securities Market, Spencer West Partner James Klein added his expert perspective on the announcement in comments published in Funds Europe Magazine.
What is PISCES?
The Private Intermittent Securities and Capital Exchange System (PISCES) is the Government's new private share trading platform, due to be launched later in 2025.
How will PISCES be delivered?
The PISCES platform will initially be delivered via a sandbox. According to the London Stock Exchange this will allow the FCA to test the design before finalising a permanent regime in 2030. Trading systems could include periodic auctions, as well as occasional and time-limited periods of continuous trading.
Insight on the approval of PISCES
In the article James stated "Today's move by the FCA to approve the LSE to operate a PISCES platform is a positive step to help build growth and investment in UK private companies and liquidity within a regulatory sandbox which in turn may boost the IPO pipeline," further adding: "The platform should allow eligible investors to gain better access to private companies through the LSE's infrastructure which should simplify the trading and settlement process as the LSE should be able to set its own rules for the platform including disclosure and other regulatory requirements – indeed the long-term potential and use of PISCES will surely depend upon the strength and understanding of the regulatory requirements which are to apply."
Reaction from the London Stock Exchange
Speaking about the approval in a press release, London Stock Exchange PLC CEO Julia Hoggett, said: "We are delighted to be the first venue operator to have been granted a PISCES Approval Notice by the FCA. Following several years of innovative development by the UK Government and regulators with active engagement from practitioners across the market, the London Stock Exchange has now taken a significant step towards the launch of our Private Securities Market later this year."
Source – LSEG Press Release
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