A new type of private stock market will be launched later in 2025 after the UK Financial Conduct Authority (FCA) announced the final rules for its Private Intermittent Securities and Capital Exchange System (PISCES).

PISCES is a new type of platform where shares in private companies can be traded. It will open the door to more opportunities for investors, facilitating their access to growth companies. Private companies can tap into a broader range of investors and asset managers and PISCES offers exits for shareholders to sell up.

As companies choose to stay private for longer, there is demand for investors to trade private company shares easily and efficiently in an organised marketplace. PISCES meets this demand by allowing secondary trading of these shares. Companies can set the floor and ceiling of share prices, and have a say over who can buy their shares.

Access to PISCES will be limited to institutional investors, high-net-worth individuals, sophisticated investors and employees of participating companies. Investors will be provided with information about the risks involved to help them make informed decisions.

As set out in the FCA’s letter to the PM outlining the regulator’s approach to support growth, PISCES can unlock capital investment and liquidity.

The platform will be delivered through a sandbox, which will allow the FCA to test the design before finalising a permanent regime in 2030. The sandbox is now open, with shares likely to be traded later in 2025. Trading systems could include periodic auctions, as well as occasional and time-limited periods of continuous trading.