The London Stock Exchange has become the first trading venue operator to be granted FCA approval to trade private company shares.
As the inaugural operator of the Private Intermittent Securities and Capital Exchange System (PISCES) – the world’s first regulated private stock market – the LSE will connect buyers and sellers of shares in private companies.
To allow the FCA to test the design of PISCES, the platform will be delivered through a sandbox, with a permanent regime to be finalised in 2030.
Simon Walls, executive director of markets at the FCA, said: "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.
“We are looking forward to seeing the first transactions, seeding a competitive market that gives greater investor access to exciting growth companies."
Julia Hoggett, CEO at the London Stock Exchange said the approval marks “a significant step” towards the launch of the LSE’s Private Securities Market later this year, and follows several years of innovative development by the UK government and regulators.
“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,” she said.
“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.”
Firms wishing to run a PISCES platform should apply to the FCA, and once approved will be permitted to run intermittent trading events.