Yesterday, a quiet revolution was unveiled in an elegant room at HM Treasury. While the city buzzed outside, a select assembly of founders, investors, and policymakers gathered to witness an initiative that could transform the UK’s startup environment: the launch of PISCES — the Private Intermittent Securities and Capital Exchange System.
If you’ve ever been involved with a startup — as an employee, investor, or founder — you understand the dilemma. You dedicate years of effort and faith to a company, only to find your shares are tightly locked. Unless your company goes public or gets acquired (a process often takes a decade or longer), your equity remains a hopeful figure on a spreadsheet.
But what if there was a different approach? What if you could unlock the value of your shares, reward your team, and attract new investors — all without the complications and costs of an IPO?
PISCES: bridging the liquidity gap
PISCES is not just another secondary market. It’s the world’s first regulated market that allows trading shares in privately held companies through FCA-approved firms.
Unlike traditional secondary platforms, PISCES won’t permit companies to raise new capital or issue new shares; only existing shares can be traded. The focus is on providing liquidity to current shareholders in a secure, transparent, and regulated environment.
The system is designed to be attractive for both companies and investors:
- Stamp Duty Exemption: Trades on PISCES will be exempt from Stamp Duty, reducing transaction costs.
- Tax-Advantaged Share Options: The government will legislate to allow new and existing Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP) contracts to be exercised on PISCES, while maintaining their tax benefits. This retroactive change ensures employees benefit from the first PISCES trades expected later this year.
- Regulatory Sandbox: For five years, PISCES will operate within a sandbox overseen by the FCA, enabling innovation while maintaining oversight and investor protection.
- Eligibility: The platform is limited to institutional investors, high-net-worth individuals, sophisticated investors, and employees of participating companies. While retail investors are excluded, this maintains a curated and informed marketplace.
Why does this matter?
UK startups can reward their teams for the first time without waiting for a mythical exit. Under the government’s new legislative framework, employees can convert their hard-earned share options into actual money while keeping the tax benefits of EMI or CSOP schemes. Early investors who took significant risks can realise some gains and reinvest in the next wave of innovation.
PISCES addresses a growing need: As companies stay private longer, liquidity demand has reached new heights. The FCA views PISCES as a way to boost investor confidence in private companies, supporting growth and scaling up. The system should also strengthen the UK’s IPO pipeline by serving as a stepping stone for companies considering going public
How will PISCES work in practice?
The legal framework for PISCES was established in May 2025. The FCA will publish its final rules in June, with the first trading windows expected to open in Autumn 2025. The London Stock Exchange is set to be among the first to offer a PISCES platform, and other organisations, like Globacap, are showing interest.
Eligible companies must not be listed on any public market. They can choose which share classes are tradable, set price limits, and determine which employees can sell and how much. The FCA is developing risk warnings and a bespoke disclosure regime to help investors make informed decisions, balancing innovation with protection.
Interest in PISCES reaches far beyond the UK. According to the London Stock Exchange CEO David Schwimmer, the platform has caught the attention of private equity firms and companies across the US, Europe, and Asia. The ability to be “public for a day,” accessing liquidity without the burdens of a complete listing, particularly appeals to fast-growing firms in tech and other innovative sectors.
PISCES is part of a broader government strategy to boost UK capital markets, including reforms to the prospectus regime, expansion of digital securities sandboxes, and creation of pension megafunds to unlock billions in investment.
The bigger picture
Some see PISCES as a testing ground for companies to gauge interest before pursuing a full IPO. Others view it as a sustainable solution — a novel market that bridges private and public realms, offering advantages from both sides.
Regardless of what lies ahead, one fact stands out: the UK is at the forefront of financial innovation. By embracing experimentation, policymakers give startups, employees, and investors a fresh avenue to stimulate growth and incentivise ambition.
If you’re involved in the startup ecosystem, take note. PISCES is more than just a regulatory adjustment — it’s a significant new chapter in how we develop, support, and believe in our economy’s future enterprises.
