JP Jenkins has become the latest securities venue to secure a Pisces operator licence by the UK’s financial regulator as competition heats up to attract businesses to the new private market.
The approval makes JP Jenkins the second company to have received a licence from the Financial Conduct Authority (FCA) after London Stock Exchange operator LSEG was granted a licence in August.
The FCA said “discussions are ongoing” with a number of other potential operators, adding it “continues to provide extensive pre-application and application support services for all potential Pisces operators to help them get off the ground as quickly as possible.”
The UK’s financial watchdog published its rulebook for the new Pisces market framework in June, laying the ground for trading to commence later this year.
The new type of platform, which facilitates the trading of shares in private companies, promises to address a longstanding liquidity gap for growth companies and early investors, offering a stepping stone for companies seeking a later flotation on a public exchange.
Mike McCudden, CEO of JP Jenkins, said: “We have worked at pace to get this project over the line and being granted the license formally recognises not only our recent achievements but also our extensive knowledge of supporting unlisted companies, their investors and indeed the wider UK economy.”
“Bringing a second operator into the market will boost competition, attract a greater variety of businesses and drive opportunities for investors,” the FCA said.
Revolut, Octopus and Oaknorth are among billion-pound businesses who have been courted by prospective operator LSEG to join the securities venue.
The fast-growing firms were part of a group of around two dozen major businesses who attended a private conference in July hosted by LSE boss Julia Hoggett for firms interested in participating in Pisces.
Atom Bank, fintech business Thought Machine and venture capital firm Oxford Science Enterprises were among those who joined the conference. Also in attendance was Multiverse, a billion-pound edtech firm set up by Euan Blair, son of ex-PM Tony Blair, and Iwoca, a small business lender which earlier this year secured £270m in debt funding from Citi and Barclays.
A spokesperson for Iwoca told City AM in July: “It’s early days, but the direction of travel is encouraging,” adding: “It’s great to see the government, the FCA and the LSE coming together with such a coordinated approach.”