The Big Bang
September 28th, 2008 . by DanielsonThe ‘Big Bang’ is the popular name for the deregulation of the Stock Exchange on 27th October 1986, when minimum scales of commission on security transactions were abolished and dual capacity introduced, thus eliminating the boundaries which historically separated the functions of jobbing (market making) and broking.
At the same time membership requirements were relaxed, which enabled large companies, (both British and foreign institutions), to absorb existing Stock Exchange members and thereby become members of the reorganised exchange.
Shortly afterwards the London Stock Exchange merged with the International Securities Regulation Organisation (ISRO) to form a single “recognised investment exchange”, to be known as the International Stock Exchange, and a single self-regulatory organisation (SRO) to be called the Securities Association.
Author’s Profile
The author was born in the City of Coventry where he lived throughout his schooling period. On leaving comprehensive school he achieved six ’0′ levels and went on to study the Business and Technical National Diploma in Business Studies at one of Coventry’s Colleges of Further Education.
After completing the two year course he left Coventry to study the Higher National Diploma in Business Studies at Brighton Polytechnic. Finally, he came to Portsmouth Polytechnic to study the Diploma in Management Studies which he is currently undertaking.
Work Profile
His work experience consisted of summer vocation work where in 1984 and 1985 he was employed as a General Assistant on a fruit farm. His duties varied from bookkeeping to serving customers in the farm shop. Then during the summer of 1986 he was an attendant at the Prince Regent Swimming Complex in Brighton where he was responsible for one of the smaller pools.
In the summer of 1987 he worked for a publishing company in Brighton, where he was responsible for generating new business and reported directly to the Managing Director.
Rationale for Choosing the Project Area
Before beginning the project the author thought of possible future career paths which he could take and realised that the City of London could have a lot to offer. On reaching this conclusion he thought that the most beneficial area for him to research would be the recent developments in the City as this would draw a picture of how the square mile worked today.
On completing preliminary research on the Big Bang the author saw that the changes and their effects might have serious repercussions for British financial Institutions, especially those of medium and small size.
These repercussions he found, would seriously affect the strategic outlook and profitability of many of the country’s stock broking companies and in an environment where size plays an important part in a firm’s ability to compete.
He concluded that the smaller sized firms would face the greatest problems and thus decided that his recommendations would be of greater use to them.The Big Bang – Introduction
The ‘Big Bang’ is the popular name for the deregulation of the Stock Exchange on 27th October 1986, when minimum scales of commission on security transactions were abolished and dual capacity introduced, thus eliminating the boundaries which historically separated the functions of jobbing (market making) and broking.
At the same time membership requirements were relaxed, which enabled large companies, (both British and foreign institutions), to absorb existing Stock Exchange members and thereby become members of the reorganised exchange.
Shortly afterwards the London Stock Exchange merged with the International Securities Regulation Organisation (ISRO) to form a single “recognised investment exchange”, to be known as the International Stock Exchange, and a single self-regulatory organisation (SRO) to be called the Securities Association.
Author’s Profile
The author was born in the City of Coventry where he lived throughout his schooling period. On leaving comprehensive school he achieved six ’0′ levels and went on to study the Business and Technical National Diploma in Business Studies at one of Coventry’s Colleges of Further Education.
After completing the two year course he left Coventry to study the Higher National Diploma in Business Studies at Brighton Polytechnic. Finally, he came to Portsmouth Polytechnic to study the Diploma in Management Studies which he is currently undertaking.
Work Profile
His work experience consisted of summer vocation work where in 1984 and 1985 he was employed as a General Assistant on a fruit farm. His duties varied from bookkeeping to serving customers in the farm shop. Then during the summer of 1986 he was an attendant at the Prince Regent Swimming Complex in Brighton where he was responsible for one of the smaller pools.
In the summer of 1987 he worked for a publishing company in Brighton, where he was responsible for generating new business and reported directly to the Managing Director.
Rationale for Choosing the Project Area
Before beginning the project the author thought of possible future career paths which he could take and realised that the City of London could have a lot to offer. On reaching this conclusion he thought that the most beneficial area for him to research would be the recent developments in the City as this would draw a picture of how the square mile worked today.
On completing preliminary research on the Big Bang the author saw that the changes and their effects might have serious repercussions for British financial Institutions, especially those of medium and small size.
These repercussions he found, would seriously affect the strategic outlook and profitability of many of the country’s stock broking companies and in an environment where size plays an important part in a firm’s ability to compete.
He concluded that the smaller sized firms would face the greatest problems and thus decided that his recommendations would be of greater use to them.