We consulted on the regulatory framework for the Private Intermittent Securities and Capital Exchange System (PISCES) sandbox in December 2024 (CP24/29).
PISCES will be a new type of platform that will enable the intermittent trading of private company shares.
We are providing an early update following the closure of the consultation on the potential impact of the feedback on our final rules to support firms who intend to operate a PISCES. We are doing this now to give firms sight of our thinking as they are working up their plans. However, final rules for PISCES remain subject to the FCA Board’s agreement.
Feedback received and our likely response
Our consultation proposals for PISCES were designed to build on existing features of private markets.
Through a 'private plus' approach, we proposed to enable a variety of PISCES models to be tested, supporting growth, innovation and competition. Most respondents to CP24/29 supported this approach and the flexibility incorporated in our proposals. We do not, therefore, intend to make material changes to our proposals, nor mandate a 'sweeper' model for additional company disclosures, as set out as an alternative approach in CP24/29.
However, we do intend to propose various technical changes. These respond to feedback that we should more fully align PISCES with private market practice, where we feel these would allow us to maintain proportionate standards appropriate for PISCES.
We are aware that potential operators of a PISCES require further information on expected changes to the proposed framework to develop their own rulebooks and to engage with their participants. To assist with that, we set out the changes we are minded to propose to the FCA Board in the table below.
The positions we outline in this statement are subject to further development and may be adjusted as we develop our rules instrument for PISCES. Final rules for PISCES will be set out in a Policy Statement which we expect to publish in June 2025 and any differences with the proposed changes described here will be clearly identified.
Our expectation remains that the PISCES sandbox will then open for applications.
We now welcome requests from prospective PISCES operators for us to provide preliminary feedback on proposed operating models and draft rulebooks. This engagement can happen from now onwards, and those interested in operating a PISCES don’t need to wait for our final rules to be published.
Formal feedback will be provided following the review of final documentation submitted as part of a valid application post publication of our final rules.