After completing the first ever auction under the framework, JP Jenkins director Dan Foster explains how it works, who it suits and what comes next.
JP Jenkins has become the first operator to execute a trade under the UK’s new Private Intermittent Securities and Capital Exchange System (PISCES), a regulatory framework designed to enable periodic trading in private company shares. The model allows companies to open their share registers to trading at set intervals, offering liquidity without committing to a public listing.
In this interview, Andrew Foster, director at JP Jenkins, discusses the firm’s first PISCES auction last month, for digital board game maker QPlay, how the model differs from its existing matched bargain facility, and what early adoption signals about the future of liquidity in private markets.
Please set out what JP Jenkins does and how PISCES fits into your platform?
Foster: JP Jenkins operates a private market venue for transacting shares in private companies. We are directly authorised by the FCA and also hold a PISCES licence. We were the second operator in the UK to receive that licence, after the London Stock Exchange.
We already service around 50 companies on our matched bargain facility. With PISCES, we are focused very much on what the company needs and how we can best support them. We’re not here to disrupt the market – we see ourselves as a utility for the industry.
You’ve had a matched bargain facility for years – what does PISCES add?
Foster: It shines more of a light on this space, both for companies and investors. The key difference is that PISCES introduces a clear and structured set of disclosures that companies must provide.
The core premise is that it’s an intermittent trading facility. A company effectively goes public for a short period, then returns to being private – then public again when the next auction happens. That’s quite different from continuous trading.
How did your first PISCES auction go?
Foster: We were very happy with it. Being the first is always nerve-racking, but we were pleased to bring a high-quality company into the framework and support them through the process.
We also had strong engagement from the market and from approved intermediaries. Everyone was understandably cautious going into it, but overall the outcome was very positive.
Why did that company choose PISCES rather than your existing facility?
Foster: There were a few reasons. It’s a consumer-facing brand, so the public exposure element was attractive from a marketing perspective.
They liked the idea of being able to access that visibility while still operating as a private company. The process resonated with them, and they’re planning to run further events over time.
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Will these auctions happen on a regular schedule?
Foster: Yes, they will be periodic. We’ll announce a schedule in due course. Predictability is important for investors, so now that we’ve completed the first auction, we’re working through the logistics and any lessons learned before rolling out future ones.
How does the regulatory burden compare with other options like AIM or your matched bargain facility?
Foster: It sits somewhere in between. It’s more work than our matched bargain facility, particularly for the first auction.
However, once a company has done the initial work, subsequent auctions should be easier because they only need to update what has changed. That’s one of the advantages of the model.
What types of companies are best suited to PISCES?
Foster: Different models suit different companies, which is why we offer both. Some companies prefer continuous trading and want to maintain that experience.
Others may only want one or perhaps a handful of liquidity events each year. For those companies, the PISCES framework can work very well. It really depends on their objectives.
What kind of investor demand are you seeing?
Foster: We’re seeing a broader range of buyers becoming involved. Retail investors are excluded under the current rules, as participants need to be self-certified.
We’ve seen strong interest from family offices, and increasingly from institutions looking to deploy larger tickets. Venture funds have also shown interest, as have some secondary funds. It’s a fairly mixed and evolving investor base.
How does price discovery work in a PISCES auction?
Foster: Companies provide a set of core disclosures – 17 key data points – alongside their financials. Investors then submit orders, similar to limit orders in public markets, specifying the price they are willing to buy or sell at.
We run a matching algorithm at a pre-agreed time, which aims to maximise traded volume while respecting those limits. That process establishes a fair price.
We also have guardrails in place to prevent excessive price swings, so companies don’t see extreme volatility from a single auction.
The auction price landed within the range we expected.
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How does PISCES compare with your matched bargain facility in terms of outcomes?
Foster: I would expect broadly similar outcomes. One difference is that there’s no stamp duty payable by the buyer in the PISCES framework, whereas there is on the matched bargain facility. That could have a marginal impact on pricing, but I wouldn’t expect a major difference overall.
Do you see PISCES as a stepping stone to IPO?
Foster: Yes, it can be. Some companies on our platform have clear ambitions to list in the future, and we support that. We see ourselves as filling the gap between private and public markets. For companies that want to IPO, we can help them prepare and build towards that. For others, it may be a long-term alternative.
How do you view the regulatory framework so far?
Foster: The FCA deserves a lot of credit. Our engagement with them and HM Treasury was excellent. They were responsive and open to feedback throughout the process.
The rules are a strong starting point. It is a sandbox, so we expect evolution over time. For example, in the future it could be helpful to open access more widely or introduce mechanisms like share buybacks – but those are things to consider later.
Is volatility a concern with intermittent auctions?
Foster: You will naturally see some movement because private company shares are typically very stable between events. Each auction introduces a new price point.
That said, we have controls in place to limit large swings. Ultimately, strong companies will attract investment, and fundamentals will drive outcomes.
What does success look like for PISCES over the next few years?
Foster: In terms of activity, a number of auctions in the 20s per year across venues would be a good starting point. But more important than volume is quality.
Success is about companies achieving what they set out to do – whether that’s providing liquidity, attracting new investors or progressing their growth plans. If that happens, then the model is working.