Londons New Private Market System Pisces Set to Revolutionise Capital Markets

The City of London is poised to launch a groundbreaking trading system called Pisces, designed to breathe new life into the UK’s capital markets. This innovative ‘private intermittent securities and capital exchange system’ represents a strategic move to attract more private companies to London’s financial ecosystem.

The system enables private companies to sell shares during specified windows without the formal requirements of a London Stock Exchange (LSE) listing. This development comes at a crucial time, as London grapples with declining Initial Public Offerings (IPOs) and the departure of established firms to overseas markets.

Last year’s statistics paint a concerning picture, with 88 companies departing the LSE while only 17 new listings materialised. The situation has grown more urgent following Glencore’s recent suggestion about potentially relocating its £43 billion listing away from London.

Moneybox, a successful financial technology company, exemplifies the type of business Pisces aims to attract. The firm achieved a £550 million valuation through a secondary share sale last year, allowing existing shareholders and staff to sell shares without raising new capital. Karen Kerrigan, Moneybox’s chief operating officer, acknowledges the appeal of remaining private longer due to reduced costs and reporting burdens.

The Financial Conduct Authority will oversee Pisces, positioning it as a ‘private market-plus’ solution. While not open to retail investors, the system will allow professional investors to trade shares under regulated conditions. Companies can set price parameters and determine trading frequencies, offering flexibility while maintaining regulatory oversight.

City Minister Emma Reynolds has emphasised Pisces as a key component of the government’s growth strategy. The system is expected to launch by July 2025, following Treasury legislation in May. With private markets projected to grow by $35 trillion in the next decade, Pisces represents London’s strategic response to evolving market dynamics.