Green Light for UK’s First Private PISCES Trading Platform by Dentons

UK Launches Pioneering PISCES Platform for Private Company Trading

London, United Kingdom – September 3, 2025 – A New Era for Private Market Investment has begun in the United Kingdom. Authorities have officially approved the launch of PISCES, a groundbreaking platform designed to facilitate the trading of private company shares. This development has the potential to significantly alter the landscape of investment, offering increased liquidity and opportunities for both investors and companies.

What is PISCES?

PISCES, which stands for Private Issuance and Securities Custody Electronic System, represents a major leap forward in the accessibility of private markets. traditionally, trading in private company shares has been a complex and often illiquid process, largely restricted to institutional investors and high-net-worth individuals. PISCES aims to democratize this market by providing a regulated and transparent platform for trading. The London Stock Exchange (LSE) is at the forefront of this innovation, having secured approval from the Financial Conduct Authority (FCA) to operate the platform.

According to data from Dealroom.co.uk, the UK private equity market saw a record £43.8 billion in investment during the first half of 2024, highlighting the considerable demand for participation in unlisted companies.

The Regulatory Framework and Key Approvals

The successful launch of PISCES hinged on receiving the necessary regulatory approvals, notably from the FCA. This approval underscores the platform’s compliance with stringent financial regulations and its commitment to investor protection. Dentons, a global law firm, provided crucial legal guidance throughout the process.

This achievement positions the LSE as the first regulated operator of a PISCES-compliant platform, setting a new standard for private market trading globally. The move is anticipated to attract a wider range of investors, including smaller institutions and possibly even retail investors, subject to appropriate safeguards.

Potential Impacts on the UK Equity Market

Experts suggest that PISCES could provide a much-needed boost to the UK equity market, which has faced challenges in recent years. By providing an alternative avenue for companies to raise capital and for investors to realize returns, the platform could stimulate economic activity and foster innovation. However,some analysts,as reported by FT Adviser,caution against over-regulation,which could stifle the platform’s potential.

Feature	Traditional Private Market	PISCES Platform
Liquidity	Low	High
Transparency	Limited	Increased
Accessibility	Restricted	Broader
Regulation	Variable	Stringent (FCA Approved)

Did You Know? the UK government is actively promoting initiatives to enhance the competitiveness of its financial markets, and PISCES is a key component of this strategy.

Pro Tip: Investors should carefully research any private company before investing, as these investments typically carry higher risks than publicly traded securities.

Looking Ahead

The launch of PISCES marks a notable moment for the UK’s financial ecosystem. As the platform matures, it is indeed expected to evolve and adapt to the needs of the market. This could involve the introduction of new features, the expansion of the range of companies listed, and the incorporation of advanced technologies such as blockchain. The overall goal is to establish a vibrant and accessible private market that benefits both investors and businesses.

Understanding Private Market Investing

Private market investing involves purchasing equity in companies that are not listed on a public stock exchange. This asset class often presents higher potential returns, but also comes with increased risk and illiquidity. Understanding the nuances of private market valuations and due diligence is crucial for successful investing.

Current market trends indicate a growing investor appetite for alternative investments, including private equity, venture capital, and private debt. This demand is driven by the search for higher yields in a low-interest-rate environment and the desire to diversify investment portfolios.

Frequently Asked Questions about PISCES

• What is the primary goal of the PISCES platform? The main goal is to increase liquidity and transparency in the private company trading market.
• Who regulates the PISCES platform? The Financial Conduct Authority (FCA) regulates the PISCES platform.
• What type of companies will be traded on PISCES? PISCES is designed for trading shares in private, unlisted companies.
• Is PISCES available to all investors? Initially,access may be limited to certain institutional and accredited investors,but the aim is to broaden accessibility over time.
• What are the risks associated with investing through PISCES? Investments in private companies carry inherent risks, including illiquidity, limited facts, and the potential for loss of capital.
• How does PISCES compare to traditional private equity funds? PISCES offers a more direct and liquid way to invest in private companies compared to traditional funds.
• Were can I find more information about the London Stock Exchange’s PISCES platform? Refer to the London Stock Exchange official website for the latest updates and details on PISCES.

Will PISCES truly revolutionize the UK’s private market? What safeguards will be put in place to protect smaller investors participating in this emerging market?

Share your thoughts in the comments below and let us know what you think!

What specific regulatory hurdles did Dentons navigate to secure FCA approval for the PISCES platform?

What is PISCES and Why Does This Matter?

The UK financial landscape is poised for a meaningful shift with the approval of the nation’s first private PISCES (Portfolio Information, Securities, and Custody Electronic System) trading platform. Legal firm Dentons has been instrumental in securing regulatory approval for this innovative system, marking a pivotal moment for alternative trading systems (ATS) and private market liquidity. PISCES platforms,in essence,streamline the trading of traditionally illiquid assets,offering increased clarity and efficiency. This growth directly addresses the growing demand for access to private market investments.

Dentons’ Role in Securing Approval

Dentons’ financial services regulatory team navigated the complex UK regulatory framework – encompassing FCA (Financial Conduct Authority) guidelines and MiFID II (Markets in Financial Instruments Directive II) compliance – to achieve this landmark approval. Their expertise in regulatory technology (RegTech) and understanding of evolving market structures were crucial. The firm provided comprehensive legal counsel throughout the submission process, addressing concerns related to:

Data Security: Ensuring robust cybersecurity measures to protect sensitive investor information.

Market Abuse Prevention: Implementing systems to detect and prevent insider trading and market manipulation.

Best Execution: Guaranteeing fair and transparent pricing for all participants.

Operational Resilience: Demonstrating the platform’s ability to withstand disruptions and maintain continuous operation.

How the PISCES Platform Will Function

This new private PISCES platform will facilitate trading in a range of asset classes currently underserved by traditional exchanges. Expect to see activity in:

Private Equity: Providing liquidity for investors in private equity funds.

Venture Capital: Enabling early-stage investors to exit their positions.

Real Estate: Offering a more efficient way to trade fractional ownership in properties.

Debt Instruments: Streamlining the trading of private debt.

The platform will operate on a Request for Quote (RFQ) model, connecting buyers and sellers directly. This contrasts with traditional order book exchanges,offering a more discreet and tailored trading experience.Key features include:

1. Automated Matching: Bright algorithms will match buy and sell orders based on pre-defined criteria.
2. Real-Time Data: Participants will have access to real-time market data and analytics.
3. Secure Custody: Assets will be held in secure custody accounts, minimizing counterparty risk.
4. Reporting & Compliance: Automated reporting tools will ensure compliance with regulatory requirements.

benefits of a Private PISCES Platform

The introduction of this platform offers a multitude of benefits to both investors and issuers:

Increased Liquidity: Unlocking value in previously illiquid assets.

Price Discovery: Providing greater transparency and more accurate pricing.

Reduced Costs: Lowering transaction costs compared to traditional methods.

Faster Settlement: Accelerating the settlement process,reducing risk.

Wider Access: Expanding access to private market investments for a broader range of investors.

enhanced Transparency: Improving transparency in private market transactions.

Implications for alternative Trading Systems (ATS)

This approval sets a precedent for other firms looking to establish private PISCES platforms in the UK. It demonstrates that the FCA is open to innovation in the financial technology space, provided that appropriate safeguards are in place. We can anticipate a surge in applications for similar licenses, leading to a more competitive and dynamic ATS landscape. This will likely drive further innovation in areas such as:

Decentralized Finance (DeFi) Integration: Exploring the potential of blockchain technology to enhance security and efficiency.

artificial Intelligence (AI) Powered Trading: Utilizing AI algorithms to optimize trading strategies and improve price discovery.

* Tokenization of Assets: Converting illiquid assets into digital tokens for easier trading.

Regulatory Considerations & Future Outlook

The FCA’s approval is contingent upon ongoing compliance with its regulations. The platform operator will be subject to regular audits and reporting requirements. Future regulatory developments, such as the evolving digital asset framework, will also impact the operation of the platform.

Looking ahead, the success of this first private PISCES platform will be crucial in shaping the future of private market trading in the UK. It represents a significant step towards a more efficient, transparent, and accessible financial ecosystem. The platform’s performance will be closely watched by industry participants and regulators alike, perhaps paving the way for further innovation and growth in the alternative trading space.