Big Bang (financial markets)
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The phrase Big Bang, used in reference to the sudden deregulation of financial markets, was coined to describe measures including the abolition of the distinction between stockjobbers and stockbrokers on the London Stock Exchange by the United Kingdom government in 1986.
The change in the rules of the London Stock Exchange occurred on 27 October 1986. The Big bang was so called because the abolition of fixed commission charges precipitated a complete alteration in the structure of the market. One of the biggest alterations to the market was the change from open-outcry to electronic, screen-based trading.
Other reforms were enacted at the same time, and it was the aggregation of the measures plus the expected increase in market activity that led to the event being called the big bang.
Subsequent similar actions, such as the deregulation of the Japanese financial markets in 2001, have inevitably also been tagged with the phrase big bang.
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[edit] References
FT, staff. "Revolution hailed but City warned of a looming fight for supremacy", In depth > Big Bang, Financial Times, Oct 29, 2006. Retrieved on 2006-10-29.
Fortson, Danny. "The day Big Bang blasted the old boys into oblivion", The Independent, Oct 29, 2006. Retrieved on 2006-10-29.
Treanor, Jill. "Revolution hailed but City warned of a looming fight for supremacy", The Guardian, Oct 27, 2006. Retrieved on 2006-10-29.
