The London Stock Exchange Group (LSEG.L) prepared to launch a new private securities market under the Pisces framework, with CEO David Schwimmer describing it as a transformative step that would expand liquidity in private capital. The Private Intermittent Securities and Capital Exchange System (Pisces), initially introduced by the previous Conservative government and now supported by Labour Chancellor Rachel Reeves, was designed to let investors in private companies trade shares on regulated exchanges during limited windows each year.
LSEG was among the firms set to operate a Pisces trading venue, giving companies the ability to tap public market infrastructure without pursuing a full listing. Schwimmer said the demand for liquidity among private firms had been rising as many reached significant scale but resisted going public. He noted that the framework would provide solutions for shareholders, limited partners, and employees looking for liquidity while keeping companies private.
Schwimmer also emphasized that Pisces would be an important gateway for institutional investors, who had historically been limited to opaque, one-off private placements. By leveraging the London Stock Exchange’s systems, he said the framework would improve transparency and access to private assets for major investors. He added that Pisces could redefine how liquidity was managed in the private markets by granting private firms access to trading infrastructure and liquidity normally reserved for public companies. The new market was scheduled to launch later this year.
Pisces was envisioned as both a platform and a showcase for private companies seeking capital. Under the model, firms would host scheduled trading events where existing shares could be sold to new investors at prices determined by the company. Only existing equity would change hands, with no new issuance allowed. Any operator of a Pisces venue would first need Financial Conduct Authority (FCA) approval before hosting intermittent auctions. This structure would allow early employees, founders, or current shareholders to realize some value without ceding control through a traditional IPO. Companies would also retain the right to screen prospective investors, preventing competitors from acquiring stakes or stopping any one investor from gaining outsized influence.
For fast-growing firms, Pisces offered a lower-cost and more flexible path to liquidity compared with IPOs. Schwimmer explained that companies on Pisces would face lighter disclosure requirements, avoiding the heavy costs and obligations of traditional listings. Proponents argued that the framework could strengthen private market liquidity, bring in more long-term investors, and serve as a cheaper option than private placements managed by investment banks.
The UK Treasury added further appeal by committing to exempt trades on Pisces from the 0.5% stamp duty applied to public share purchases, a move aimed at boosting liquidity and enhancing London’s competitiveness as a global equity hub. Overall, the launch aligned with broader government and regulatory efforts to revitalize UK capital markets and drive greater economic investment.
Source: Yahoo! Finance UK
