AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
.jpg)
Highlights
London Stock Exchange unveils new platform for trading unlisted shares
Private Securities Market to operate under auction-based model
Pisces venue expected to launch later this year following regulatory approval
The London Stock Exchange Group (LON:LSE), a key component of the FTSE 100, has confirmed the upcoming launch of a dedicated private securities trading platform, aligned with the UK government’s Pisces framework. The initiative is designed to accommodate share trading in unlisted companies, differentiating itself from traditional public equity platforms.
The new venue, branded as the Private Securities Market, is expected to begin operations before the end of the year, pending regulatory clearance. This move places the LSE at the forefront among several platforms applying to run private markets under the government's Private Intermittent Securities and Capital Exchange System scheme.
Pisces aims to create an ecosystem where private companies can access capital without the demands of a full public listing. The Financial Conduct Authority recently finalised the regulatory framework for Pisces, introducing relaxed standards in areas such as disclosures and accounting, in a bid to attract a broader range of companies to the platform.
The Private Securities Market will operate on a defined schedule using an auction-based model. On designated trading days, all transactions will clear through a single uncrossing mechanism that sets one execution price per security. This approach contrasts with the continuous trading structure used by other platforms, offering a time-restricted, auction-driven alternative.
While the market will fall outside of existing UK market abuse regulations, the LSE has outlined its own rules to maintain market integrity. Member firms will be restricted from manipulative behaviours, with strict internal enforcement anticipated to align with industry standards. Additionally, measures are in place to prevent short selling of securities listed on the Pisces platform. These securities will be excluded from the buying-in mechanism, a core process used to resolve unsettled short positions.
The initiative reflects an effort to broaden the capital markets landscape within the UK, catering to the needs of private firms seeking liquidity while preserving a degree of investor oversight. The LSE’s involvement adds significant weight to the scheme, given its status within the broader FTSE 350 and its global reputation.
The platform's development could mark a notable shift in how private capital is accessed and traded in the UK. With other market operators expected to explore different trading formats under the Pisces scheme, such as time-limited continuous trading, the LSE’s structured auction approach provides a distinctive entry to the evolving private market space.
