London Stock Exchange (LSE) conducted the historic first transaction under the new PISCES (Private Intermittent Securities and Capital Exchange System) regime. This is a significant innovation that could change the way investors approach shares in unlisted companies.
What is PISCES?
PISCES is a new trading framework that allows trading shares in private companies without the need for a full IPO. Instead of a traditional stock market entry, trading takes place through periodic auctions that:
allow companies to gain liquidity without full regulation of the public market
they provide investors access to private companies
they create a bridge between venture capital and the public market
It is a compromise between private and public capital markets.
First transaction: Oxford Science Enterprises
The historically first transaction under the PISCES regime took place with shares of Oxford Science Enterprises, an investment firm focused on commercializing research from the University of Oxford.
This step indicates that there is real interest in the new model among investors and companies.
Why is this important?
In recent years, many companies have postponed IPOs due to regulatory costs, market volatility, and pressure for quarterly results. PISCES can offer:
more flexible access to capital
greater control for founders
a new investment opportunity for institutional and qualified investors
If the model proves successful, it may inspire other global exchanges.
What does this mean for the markets?
With this step, London shows its effort to reinforce its role as a global financial center after Brexit. Capital market innovations can attract new companies that would otherwise consider entering U.S. exchanges.
PISCES can thus be the beginning of a new era, where the boundaries between the 'private' and 'public' market will not be as sharp as they are today.