The Financial Conduct Authority (FCA) has unveiled groundbreaking plans for a new trading platform that will enable private companies to sell shares to institutional and professional investors without adhering to standard market abuse regulations.
The innovative Private Intermittent Securities and Capital Exchange System, dubbed Pisces, represents a significant shift in the UK’s financial marketplace. This development arrives as London grapples with maintaining its competitive edge amidst a series of high-profile companies relocating their listings to New York.
Under the proposed framework, private organisations will operate within a disclosure-based regime, requiring them to provide key information to investors before trading events. This approach mirrors existing private market practices rather than the stringent regulatory requirements of public exchanges.
The London Stock Exchange and other operators will have the opportunity to establish their own Pisces platforms, with oversight responsibility for monitoring and addressing manipulative trading practices. The FCA will maintain supervisory control over these venues.
Simon Walls, interim executive director of markets at the FCA, emphasised the transformative potential of this new stock market, suggesting it could revolutionise how private companies access funding and achieve growth. The system is positioned as a potential stepping stone for companies considering full IPO listings.
The Treasury’s economic secretary, Tulip Siddiq, has highlighted these plans as a crucial step in delivering the new market next year. This initiative aligns with broader reforms, including the FCA’s revision of UK listing rules and the creation of pension megafunds, potentially unlocking £80 billion in business and infrastructure investment.
The FCA plans to publish the final rules for Pisces next summer, with a sandbox regime in place until then to allow for necessary adjustments. This development marks a significant evolution in the UK’s financial markets landscape, potentially offering a vital bridge between private and public market trading.
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