LONDON, Nov 18 (Reuters) - UK unlisted assets specialist

JP Jenkins has become the second company to win British

regulatory approval to operate a new exchange to allow investors

to trade shares in private companies, the markets watchdog said

on Tuesday.

The Financial Conduct Authority, which in August approved a

similar request from the London Stock Exchange ( LDNXF ), said a

second operator of a Private Intermittent Securities and Capital

Exchange System (PISCES) platform would boost competition

and drive investor opportunities.

Britain set out draft rules last year to allow trading in

private companies on regulated exchanges in the hope of stemming

delistings and outflows from UK capital markets while offering

private firms a quicker route to new investors.

Regulated PISCES platforms, which connect buyers and sellers

of shares in private companies during special trading windows,

can allow companies to raise money, test valuations and reward

insiders without the costs of a public listing.

In an attempt to kick-start anaemic growth, ministers and

regulators are hoping PISCES will help unlock capital for

private firms, although some bankers fear hits to revenues and

being bypassed in a booming market for private capital. Others

voice concerns about lighter disclosure demands.

Mike McCudden, the chief executive of JP Jenkins, said the

approval highlighted the firm's extensive knowledge of

supporting unlisted companies and their investors.

The firm offers privately-held companies access to a network

of brokers and agents and can connect buyers and sellers of

unlisted assets.

The Financial Conduct Authority said discussions with other

companies interested in becoming PISCES operators were

continuing.