By: Payel
Published on: Jun 11, 2025
Pisces: A Game-Changer for UK Private Markets or Just a Stepping Stone?
The United Kingdom is poised to reshape its investment landscape with the introduction of a brand-new trading platform—Pisces. Unveiled by the Financial Conduct Authority (FCA) in collaboration with the Treasury’s Economic Secretary Emma Reynolds, Pisces is designed to allow secondary trading of shares in private companies.
Set to launch later this year, Pisces is one of the most ambitious reforms in the UK’s financial sector in recent years. The platform is part of broader efforts to strengthen capital markets, attract global investors, and provide liquidity to private equity holders. But what exactly is Pisces, and what could it mean for investors, private companies, and the future of UK finance?
Let’s break it down.
Pisces, short for Private Intermittent Securities and Capital Exchange System, is a regulated platform where shares in private companies can be bought and sold by qualified investors. Unlike public stock exchanges, Pisces focuses exclusively on private equity, providing a structured and transparent environment for trading shares that traditionally lacked liquidity.
According to the FCA, Pisces will allow private companies to:
Simon Walls, Executive Director of Markets at the FCA, noted:
“This bold design rebalances risk. It’s this kind of risk-taking that made the UK a global financial leader. Pisces empowers investors with new access while enabling founders and employees to realise gains without a full IPO.”
The UK government and financial regulators are increasingly focused on rejuvenating the domestic equity markets. Recent trends have seen a significant outflow of capital from UK stock markets and several high-profile companies shifting their primary listings to the U.S.
Pisces is part of the FCA’s reform strategy to:
Emma Reynolds, economic secretary to the Treasury, highlighted the initiative as a key element of the UK’s “Plan for Change”:
“Pisces is a great example of industry, regulators, and government working together. This opens the door for broader capital access, employee liquidity, and growth for UK companies. It’s a significant innovation.”
One of Pisces' strategic objectives is to serve as a bridge between being a private company and going public. While traditional IPOs require rigorous regulatory compliance, quarterly reporting, and broad investor scrutiny, Pisces allows firms to adapt gradually.
Dan Coatsworth, an investment analyst at AJ Bell, explains:
“Pisces can help prepare companies for the public spotlight. It encourages financial transparency and investor engagement while allowing founders to understand shareholder expectations without losing control.”
In essence, Pisces offers a ‘trial phase’ for businesses before deciding to fully list on markets like AIM or the London Stock Exchange.
Access to Pisces will be limited, especially during its early stages.
Eligible Participants Include:
Retail investors, unless employed by a participating company, will not have access. This approach ensures that those engaging in the market understand the risks associated with illiquid, unlisted assets.
To promote financial literacy, Pisces will also require participating investors to be provided with risk disclosures and key financial information to make informed decisions.
One of the most transformative aspects of Pisces lies in employee equity.
Traditionally, employees at private firms often receive shares or stock options but struggle to realise their value due to the lack of a trading mechanism. Pisces offers them a chance to:
As Coatsworth notes:
“Employees are often discouraged from investing because they can’t exit. Pisces could change that, instilling a culture of saving and investing early in their careers.”
Pisces is not a rival to existing exchanges like AIM. Rather, it complements them. It does not support capital raising and is strictly a secondary market for share trading. This means:
Instead, Pisces serves a niche: enabling ownership transfer and liquidity within the private investment ecosystem. Over time, it could evolve to introduce new features based on market demand and regulatory flexibility.
To encourage adoption, the UK government has made Pisces transactions exempt from stamp duty and stamp duty reserve tax—a move that levels the playing field with AIM and other growth markets.
Coatsworth argues this is a long-overdue measure:
“Stamp duty adds unnecessary cost to UK trading. Removing it for Pisces is a positive step—but why stop there? Removing stamp duty across the board could significantly improve UK market competitiveness.”
Tax efficiency is likely to attract more institutional and global investors, making Pisces a compelling entry point into UK’s innovation economy.
Like any new market, Pisces comes with its set of challenges:
However, these limitations are offset by strong safeguards, including investor categorisation, transaction rules, and FCA oversight.
Pisces represents a bold shift in how capital flows through the UK economy. By bridging the gap between private and public markets, it could:
It’s unlikely to “change the world,” as Coatsworth puts it, but it’s a strategic tool that aligns with the UK’s long-term financial modernization plan.
Pisces is more than just a new trading platform—it’s a bold attempt to democratize access to private company investments (for qualified investors), foster innovation, and solidify the UK’s position as a global financial hub.
With exemptions, structured governance, and a clear purpose, Pisces is set to become a critical component of the UK’s evolving capital markets ecosystem.
For now, it may be limited in scope—but the long-term vision is clear: a more accessible, efficient, and inclusive financial system for future generations of entrepreneurs, investors, and workers.
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