London Stock Exchange Group approved as first PISCES operator

Today marks a significant development for implementation of the Private Intermittent Securities Capital Exchange System (PISCES) Sandbox. The Financial Conduct Authority announced today that the London Stock Exchange Group (LSEG) has been approved as the first operator of a PISCES. 

PISCES is a new type of regulated trading platform that will facilitate the secondary trading of unquoted company shares on an intermittent basis. The LSEG states that its PISCES, named the Private Securities Market, is “designed to establish the UK as the first global financial centre to create a seamless funding journey for early stage, scaling and mature private businesses, by providing better connectivity between the private and public markets and creating a market ecosystem, tailored to the needs of the private companies whilst also  giving access to a wider range of investors.”

The LSEG will operate the Private Securities Market as a Recognised Investment Exchange and will leverage its existing trading infrastructure, enhanced with new features that allow companies greater control over who can access their disclosures.

The LSEG also published today its draft Private Securities Market Rules and Private Securities Market Handbook and proposed amendments to the Rules of the London Stock Exchange and Admission and Disclosure Standards. The Private Securities Market Rules set out the process for joining the Private Securities Market, including eligibility criteria. A key element of this criteria includes the requirement for an applicant to demonstrate to the satisfaction of the LSEG at least two of the following:

• the applicant has undertaken a fundraise (whether debt or equity) of at least £10 million (or equivalent), which included a material participation of experienced investors independent of the applicant, within the last 3 years; 
• the total assets of the applicant are at least £20 million (or equivalent) based on the applicant’s latest audited financial statements; and/or 
• the annual turnover of the applicant is at least £10 million (or equivalent), based on the applicant’s latest audited financial statements.

This reflects the LSEG’s comments that “the market’s intermittent trading facilities will generally be more appropriate for those companies that have already had a degree of past external scrutiny of their business and have experience of making private company disclosures to investors.”

The Private Securities Market Rules also provide more information on how disclosures shall be made in relation to proposed auctions, using a dedicated disclosure portal. In addition to the core disclosures required by the PISCES Sourcebook (see Key aspects of the FCA’s PISCES Sourcebook), companies have discretion to make additional voluntary disclosures. The portal will also facilitate Q&A, allowing investors to raise questions and for the company to respond accordingly. 

The LSEG has welcomed comments and feedback on the proposed design of and rules for its Private Securities Market by 9 September 2025. The final form rulebooks will come into effect when the LSEG officially launches the Private Securities Market, the date of which is yet to be confirmed.