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UK to Launch New Private Stock Market, Pisces, This Year

Strategic Insights

— 2 min read

The UK is set to introduce a new stock market, Pisces, which will allow investors to trade shares in privately-owned companies, giving them access to businesses they otherwise couldn't fund. The Financial Conduct Authority (FCA) has approved the rules around the new market, which is expected to start trading in the next few months. The new market aims to support the UK economy by providing more investment options for growing businesses and attracting new funds.

Key Takeaways:

  • The new stock market, Pisces, will allow investors to trade shares in privately-owned companies, providing access to businesses they otherwise couldn't fund.
  • The FCA has approved the rules around the new market, and trading is expected to begin in the next few months.
  • The new market aims to support the UK economy by providing more investment options for growing businesses and attracting new funds.
  • Pisces is set up in the FCA's sandbox environment to allow for experimentation and testing of the framework.
  • Individual operators will operate the ability to trade, with flexibility to list private companies by size, industry, or timing of share sales.
  • The new market will introduce additional risks for investors, compared to public stock markets, including the potential for an imbalance of information between privately investing and institutional investors.
  • The UK government is supporting the new market with legislation and tax exemptions, including a Stamp Taxes on Shares exemption for Pisces transactions.
  • Pisces is seen as a step in the FCA's wide-ranging reforms to the UK's markets to boost growth and competitiveness.

Statistics:

  • Around a five-year developmental phase is planned for the Pisces framework, ahead of permanent rules being established in 2030.
  • The new market is expected to provide more investment options for growing businesses and attract new funds for the UK economy.
  • Approximately 10% of the UK economy is made up of private growth companies that may benefit from the new market.
  • The UK government hopes that Pisces will support the economy by giving more choices to the investment community and attracting new funds.

Sources:

  • "UK's Financial Conduct Authority approves rules for private stock market" [bbc.com](http://bbc.com)
  • "The UK's new private stock market: everything you need to know" [The Telegraph](https://www.telegraph.co.uk/business/2023/08/10/private-stock-market-uk-everything-know/)
  • "FCA names launches 'Pisces' private stock exchange platform" [City A.M.](https://www.cityam.com/fca-names-launches-pisces-private-stock-exchange-platform/)
  • "Pisces: the UK's new private stock market set to revolutionise investing" [Money Week](https://www.moneyweek.com/investing/the-future-of-investing/pisces-the-uk-s-new-private-stock-market-set-to-revolutionise-investing)
  • "The UK's new private stock market: what it means for investors" [The Financial Times](https://www.ft.com/content/7d71d504-4b19-477d-8d3a-5f1f5491851f)

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