In a quiet room at HM Treasury, while the financial heart of London buzzed beyond its doors, a transformative moment quietly unfolded. A select group of founders, investors, and government officials gathered to witness the birth of something new: PISCES, the Private Intermittent Securities and Capital Exchange System. With it, the UK just reimagined how the private stock market could work — and it might change startup investing forever.
For anyone who’s built, backed, or worked at a startup, the story is all too familiar. You commit years to a company, but your equity remains locked in limbo. Unless the company goes public or gets acquired — something that can take a decade — your shares are little more than numbers on a spreadsheet.
Now imagine if there was another way — one that let you cash in without going through the long, complex, and expensive process of an IPO. That’s what PISCES sets out to do.
A New Marketplace for Private Equity
Unlike traditional secondary markets, PISCES is the first FCA-regulated platform that allows trading of shares in private companies — but only among eligible shareholders. Companies can’t raise new funds or issue new stock through it. Instead, the focus is on giving existing shareholders a secure and transparent way to unlock the value of their holdings.
This is a game-changer for the UK private stock market. Here’s why:
- Stamp Duty exemption: All PISCES trades are free from Stamp Duty, lowering the friction for participants.
- Tax-friendly share options: Employees can exercise share options granted under EMI or CSOP schemes on PISCES without losing their tax perks — thanks to a new law that also applies retroactively.
- Regulatory sandbox: For the next five years, PISCES will operate under a custom FCA sandbox, allowing controlled experimentation with strong investor protection.
- Curated investor pool: Participation is limited to institutional and sophisticated investors, high-net-worth individuals, and employees of listed companies. Retail investors are excluded for now to keep the market focused and well-informed.
This system doesn’t just serve founders or VCs — it’s a lifeline for employees too. For the first time, UK startup staff will have a regulated, tax-efficient route to sell shares and benefit from the value they’ve helped create, without waiting for an exit that may never come.
Unlocking Growth Without Going Public
The demand for liquidity in the private sector has soared. Startups are staying private longer, and early stakeholders often find themselves locked in for years. With PISCES, the UK is offering a middle ground — a way to be “public for a day,” gain liquidity, and still remain a private company.
The legal framework was finalized in May 2025. The FCA is set to release its final rules in June, and the first trading windows will open by Autumn. The London Stock Exchange plans to be one of the first PISCES platforms, with others like Globacap expected to follow.
Here’s how it works: companies choose which share classes to allow on PISCES, set limits on trading volumes, and determine who can sell. The FCA will provide risk warnings and custom disclosure rules to help ensure transparency and informed decision-making.
What’s more, PISCES has global appeal. The CEO of the London Stock Exchange noted interest from private equity firms and tech startups across the US, Europe, and Asia. For high-growth firms, this model offers a compelling alternative to traditional IPOs — especially those not yet ready for a full public debut.
This is just one part of a bigger push to strengthen UK capital markets. Alongside PISCES, the government is overhauling the prospectus regime, launching digital securities initiatives, and creating pension megafunds to channel more capital into innovation.
Redefining Startup Liquidity
Some see PISCES as a stepping stone to IPO readiness. Others think it could stand on its own as a new hybrid between private and public markets. Whatever the outcome, the signal is clear: the UK is leaning into financial innovation and providing a platform where ambition, talent, and capital can align more fluidly than ever before.
If you’re part of the startup ecosystem — as a founder, employee, or investor — this is a pivotal development. PISCES is more than a regulatory tweak; it’s a bold reimagination of how we value and support growth companies in the UK.
