Laura WilesThe FCA is consulting on the proposed framework for its Private Intermittent Securities and Capital Exchange System (PISCES).
PISCES will be a new type of trading platform, enabling intermittent trading of private company shares using market infrastructure. It plans to use public market features like multilateral trading, alongside private market features aimed at giving companies greater discretion over: how and to whom their disclosures are distributed; when trading occurs; and which investors may participate. The proposed framework will be established under a FMI sandbox created by the Treasury, which will in turn give the FCA powers to implement and oversee its operation. The sandbox is anticipated to run for 5 years. The consultation also sets out the key distinguishing features of PISCES against multilateral trading facilities and crowdfunding platforms.
The FCA notes that its consultation should be read alongside the Treasury’s response to its PISCES sandbox consultation, and the draft PISCES sandbox regulations.
The FCA also highlighted that there is no statutory duty to consult on its proposals to implement and operate the PISCES sandbox, and that while it is choosing to do so now to give fair consideration to the impact of proposals, it may not in future.
The consultation closes on 17 February 2025.