Summary of UK Treasury consultation on PISCES

The UK Treasury released a consultation paper on 6 March 2024 outlining the development of the Private Intermittent Securities and Capital Exchange System (PISCES), aimed at creating liquidity windows for private companies to trade shares at predetermined intervals. The proposed regulatory 'sandbox' will temporarily relax securities regulations, allowing new technologies and practices to be tested over a proposed duration of five years before becoming permanent.

Key points:

• PISCES is designed to provide a platform for secondary transactions in private company shares.
• The sandbox would adjust existing legislation to permit intermittent trading that complies with market abuse, transparency, and disclosure rules only during active trading windows.
• Initially, trading on PISCES would be restricted to institutional and professional investors, with considerations underway to potentially include certain categories of retail investors in the future.
• There are no current plans for rigorous admission requirements for companies but corporate governance standards may be imposed by PISCES operators.
• Shares traded must be freely transferable and not listed elsewhere; companies might need to amend their articles of association and other shareholder documents accordingly.
• Disclosure within PISCES would maintain a 'private perimeter', requiring detailed company information available solely to eligible investors on the platform.
• Full pre- and post-trade transparency is mandated for intermediaries and end-users, while public dissemination remains at the discretion of PISCES operators.
• Companies would gain the power to mandate disclosures about interests in their shares from stakeholders.

For an in-depth analysis of the implications of the UK Treasury's consultation on PISCES and its potential impact on liquidity in private companies, please read our full article, or contact Paul Thorpe directly for further assistance.