The London Stock Exchange recently achieved a noteworthy milestone. It secured a PISCES Approval Notice (PAN) from the Financial Conduct Authority (FCA) for its Private Securities Market. This accomplishment sets it apart as the first operator to gain this status. PISCES, short for ‘Private Instrument Secured by Cash Escrow Service’, is a regulatory framework established by the FCA. This approval ushers in a fresh chapter for the London Stock Exchange and UK’s private companies.
The PAN, awarded to the Private Securities Market, introduces an innovative aspect to the London Stock Exchange’s operations. For the first time, it permits private companies to tap into intermittent liquidity. This is a crucial breakthrough, considering these private companies previously had scarce options to raise funds or provide liquidity to their shareholders. Currently, they can access capital and offer liquidity in a regulated, secure environment.
Impact on Private Companies
Undoubtedly, the FCA’s approval brings a fresh dynamic to the private sector landscape. The London Stock Exchange’s Private Securities Market, now offering intermittent liquidity, is a game-changer. It paves the way for these companies to secure capital for growth and simultaneously tackles the liquidity challenge many private companies encounter.
Prior to this shift, private companies depended on traditional methods to raise funds. These methods often led to prolonged turnaround times and increased complexity. However, with the Private Securities Market, they now have a streamlined platform that enables efficient access to funds.
The London Stock Exchange’s Private Securities Market is poised to serve as a much-needed bridge between private companies and investors. This not only propels the growth of private companies but also opens a new investment avenue for investors. It’s a mutually beneficial situation and a significant leap in the evolution of the UK’s financial market.
