JP Morgan eyes role on London Stock Exchange’s Pisces market
JP Morgan is seeking approval to handle deals on the London Stock Exchange’s Pisces market in a sign of growing momentum behind the private bourse.
The US bank is looking to join the likes of Bank of America and Rothschild in becoming a so-called which would allow it to broker deals on the London Stock Exchange’s Private Securities Market, sources told Morning Wire.
Pisces – the Private Intermittent Securities and Capital Exchange System – was introduced by the Financial Conduct Authority (FCA) last year to allow private companies to sell shares at structured auctions in a style that resembles public markets.
Drawn up by the London Stock Exchange and the previous Conservative government, the framework was designed to allow investors and employees to cash in their shares without the rigmarole of a public listing. Several private companies have since launched their own version of the market including the London Stock Exchange and JP Jenkins.
A shot in the arm for Pisces?
JP Morgan’s interest will be another boon to the fledgling bourse after a crop of deals from high-growth start-ups in recent months.
Wayve, the AI car firm, allowed its staff to sell around $85m (£62.8m) of shares on the market in July in the first major employee share sale on the platform. Savings fintech Moneybox also ran a £45m staff share sale through the exchange later that month, which valued the company at £800m.
David Schwimmer, the boss of LSEG, the parent company of the London Stock Exchange, told investors in July there was “growing momentum” behind the market and it was “opening up significant new market opportunities” for the group.
The summer deals came after a sluggish start for the Pisces framework, which was launched to much fanfare from the government but attracted criticism from some advisers who questioned its usefulness.
Several people spoken to by Morning Wire have raised concerns the market could undermine the UK’s efforts to revive its initial public offering pipeline by allowing firms to stay private for longer.
The London Stock Exchange has hosted just one sizeable IPO this year for the Uzbek national investment fund, UzNIF, which raised $600m in a dual listing in Tashkent and London in May.
JP Morgan declined to comment. The London Stock Exchange declined to comment.