Comment On PISCES Presenting As A Solution Looking For A Problem

Pisces, which stands for "Private Intermittent Securities and Capital Exchange System," is the City of London's groundbreaking initiative to rejuvenate its stock market. Designed for flexibility, Pisces allows private companies to sell shares temporarily, bypassing the complexities and formalities of a traditional IPO on the London Stock Exchange

Commenting on PISCES presenting as a solution looking for a problem, Douglas Grant, Group CEO of Manx Financial Group, said: “PISCES presents an intriguing attempt to enhance liquidity by offering an alternative to traditional stock exchanges. While any mechanism that helps entrepreneurs unlock equity is a welcome innovation, its practical appeal remains uncertain. Since PISCES only facilitates secondary trading without enabling capital raising, many companies may have little incentive to use it. Managing separate regimes for primary and secondary markets could also introduce unnecessary complexities. A critical factor in its success will be the alignment of tax incentives to encourage entrepreneur participation. Without a supportive framework, uptake may be limited. Moreover, existing platforms, such as AIM, may see PISCES as a competitive threat rather than a complementary tool, further constraining its market impact.

“That said, one of its most promising aspects is the potential to enhance liquidity by de-regulating fragmented local pension schemes, a strategy that has proven highly effective in other jurisdictions. If implemented effectively, this could drive market growth and create more robust capital dynamics. However, without clear advantages over existing alternatives, PISCES risks being a solution in search of a problem.”