JP Morgan eyes role on London Stock Exchange’s Pisces market

JP Morgan is seeking approval to broker deals on the London Stock Exchange's Pisces market, indicating growing interest in the private bourse. The US bank aims to join other firms like Bank of America and Rothschild as registered auction agents, allowing it to facilitate transactions on the Private Securities Market. Pisces, introduced by the Financial Conduct Authority last year, enables private companies to sell shares through structured auctions, resembling public markets.

The London Stock Exchange and previous Conservative government developed this framework to facilitate investors and employees in selling shares without the complexities of a public listing. Notable private companies like the London Stock Exchange and JP Jenkins have already launched their versions of the market. JP Morgan's involvement is seen as a potential boost for Pisces, following a series of high-growth start-ups' deals on the platform.

Wayve, an AI car firm, allowed its staff to sell $85 million in shares on the market in July, while Moneybox, a savings fintech, conducted a £45 million staff share sale later that month, valuing the company at £800 million. LSEG, the parent company of the London Stock Exchange, reported "growing momentum" behind the market, presenting new opportunities for the group.

These recent deals followed a slow start for Pisces, which faced criticism for its usefulness despite initial government support. Concerns have been raised that the market could hinder the UK's efforts to revive its initial public offering pipeline by allowing firms to remain private for longer. The London Stock Exchange has hosted only one significant IPO this year, a $600 million dual listing for the Uzbek national investment fund, UzNIF, in May.