HM Treasury has introduced legislation to establish the Private Intermittent Securities and Capital Exchange System (PISCES) Sandbox, creating a new type of organised market for trading shares in private companies to support growth companies and the UK IPO pipeline. Stock market operators are expected to be able to launch PISCES platforms in the coming months, with share trading anticipated in the Autumn. The legislation includes changes intended to ensure employees can exercise share options on PISCES while retaining existing tax advantages, by extending the Enterprise Management Incentives (EMI) and Company Share Option Plan (CSOP) frameworks to cover PISCES. This sits alongside the Autumn Budget decision to exempt PISCES transactions from Stamp Taxes on Shares. PISCES is designed to give companies and investors flexibility over when and to whom shares are traded, with disclosure required only ahead of trading. The Financial Conduct Authority will publish the rules underpinning PISCES shortly after the legislation comes into force, after which operators will be able to apply to run PISCES trading events. The first PISCES trading events are expected to take place later this year.
HM Treasury 2025-05-14
HM Treasury legislates to create the PISCES sandbox for intermittent trading of private company shares and preserve employee share option tax relief
HM Treasury has introduced legislation to establish the Private Intermittent Securities and Capital Exchange System (PISCES) Sandbox, facilitating a new market for trading shares in private companies. The legislation extends the Enterprise Management Incentives and Company Share Option Plan frameworks to PISCES, maintaining tax advantages and exempting transactions from Stamp Taxes on Shares. The Financial Conduct Authority will publish rules for PISCES, with trading expected to commence later this year.