Winterflood has announced that it has been approved as a Registered Auction Agent [RAA] on the LSE’s Private Securities Market or PISCES [Private Intermittent Securities and Capital Exchange System] market. The LSE was the first market to gain approval under the new rules.
PISCES is an attempt in the UK to improve private capital markets by providing streamlined listing criteria and liquidity for private shares. Like other markets, more traditional stock exchanges have been in decline. This is typically due to onerous regulations. This means that private securities markets have grown, mainly appealing to institutional money, but a growing number of individual investors are seeking access to these assets. The US is home to multiple platforms for trading private securities, and the market is expected to grow. The advent of tokenization will further fuel this growth. If the UK wants to remain competitive, it needs to do something similar to what is taking place in the US.
Winterflood, a liquidity provider and retail-focused capital markets distributor, will be a licensed intermediary able to execute orders on the Private Securities Market [PSM] on behalf of investors. Winterflood noted that it is one of a number of brokers, advisors, lawyers, and other financial and professional services firms that will operate as an RAA.
Scott Lesser, Head of Trading Solutions at Winterflood, says they have carved out a niche as a retail-focused facilitator, and they are working closely with all potential PISCES venues to enable retail involvement in private markets.
Joe Winkley, Head of Corporate Services at Winterflood, noted that the FCA has made increased investment in private markets a defining ambition, and now there is a regulatory environment and technology to enable investment.
PISCES is currently expected to be made available to some retail investors, typically high net worth and sophisticated individuals.