City Markets after Big Bang

Margaret Reid

Chapter 5 in All-Change in the City, 1988, pp 89-122 from Palgrave Macmillan

Abstract: Abstract The City’s Big Bang day, 27 October 1986, when Britain’s glossy, modern-style stock market made its bow, may have dawned like just another Monday. But there was soon no doubt it had ushered in a new age. Business at once burgeoned and within a year trade with customers in United Kingdom shares was nearly double what it had been before the reforms. The soaring trend owed something to the climb in share prices, which rose 46 per cent in the first seven months of 1987 after a near-one quarter increase in 1986, and to the launch of privatisation issues. But the much enlarged market, where thirty-five well-capitalised market-makers replaced thirteen jobbers, with its greater depth — facilitating large deals — and its cheaper costs, was clearly the trigger to the volume leap. By September 1987, customer business in domestic British equities was running at over £1·1bn a day, against £0·6bn in 1986, with £0·8bn of further deals taking place among the market-makers.

Keywords: Interest Rate; Stock Exchange; Money Market; Foreign Exchange Market; Traded Option (search for similar items in EconPapers)
Date: 1988
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-07005-3_5

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DOI: 10.1007/978-1-349-07005-3_5

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