The London Stock Exchange has become the first organisation to receive approval from financial regulators to operate a PISCES platform.
The Private Intermittent Securities and Capital Exchange System (PISCES) is a new system for corporate funding that allows private businesses to auction off shares to a pool of professional investors without a full-scale public offering.
The PISCES framework came into effect in June in an effort to create new avenues for firms to secure funding at a time when many are cautious to assume the risks and demands of a public listing.
On Tuesday the Financial Conduct Authority (FCA) announced the London Stock Exchange as the first approved PISCES operator.
“We are delighted to announce the first PISCES operator has been approved, marking a major milestone in our drive to boost growth and unlock capital investment,” said Simon Walls, executive director of markets at the FCA.
“We are looking forward to seeing the first transactions, seeding a competitive market that gives greater investor access to exciting growth companies.”
Firms have been invited by the regulator to apply for approval to run a PISCES platform.
“This new market demonstrates our commitment to the creation of a genuine funding continuum from the private to public markets so that businesses in the UK and around the world can be effectively supported across all stages of their growth,” said Julia Hoggett, chief executive of the London Stock Exchange PLC.
“We look forward to welcoming the first private companies to utilise the market when they have completed their preparations and to expanding the options they will have to realise their ambitions.”
The government has high hopes for PISCES, which it believes will provide a reliable source of funding for UK businesses not able or ready for an initial public offering without forcing them to look overseas.
“This government is committed to working with the regulators and business to enhance our capital markets offering, supporting economic growth, and putting more money in working people’s pockets as part of our Plan for Change,” said Economic Secretary to the Treasury Emma Reynolds.
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