The UK will launch a private company stock trading platform later this year

The Zhitong Finance App learned that the Financial Conduct Authority (FCA), the UK financial regulator, announced on Tuesday that a new private company stock trading platform — the Private Intermittent Securities and Capital Trading System (PISCES) for short — is scheduled to be launched later this year.

The launch of PISCES is part of an effort by UK regulators and the government to strengthen the UK capital market to facilitate the trading of private company shares. As many companies choose to remain private for a long time, investors' demand for easier trading of private company shares is also growing. On December 17, 2024, the FCA proposed the establishment of PISCES to provide investors with more opportunities to participate in private companies and diversify return on investment channels.

The FCA said PISCES will only be open to institutions and individuals willing to make high-risk investments and employees of participating companies. Simon Walls, executive director of FCA Markets, said the new platform will increase investors' confidence in acquiring and investing in new companies.

The first stocks are expected to be traded on the platform via a “sandbox” later this year. This sandbox, which is currently in operation, allows regulators to evaluate the platform's performance before deciding on a permanent system in 2030.

Additionally, the FCA said in a statement on Tuesday that after hearing feedback from the industry, the regulator cut the amount of information such as sustainability that every company must disclose before selling shares in this way. It also adjusted the rules for determining major shareholders, so only shareholders holding 25% or more of the shares will be disclosed.