The 'Big Bang' refers to the deregulation of the London Stock Exchange, which took place on 27 October 1986. As a result, foreign firms were allowed to buy UK stockbrokers; fixed share-dealing commissions were scrapped; and firms were allowed to act as both brokers for clients and deal for themselves. At the same time, the open outcry system of the old London Stock Exchange trading floor was replaced with computerised trading.
The changes are seen as among the most important factors leading to the City's current position as a top global financial centre. Traditional brokerages vanished, paving the way for today's huge investment banks, while, most importantly for the private investor, competition drove down share dealing costs.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
-
State pension gender gap ‘almost closed’ for new retirees – but private gap widensThe state pension amounts for men and women are on course “to be equal very shortly”, says Department for Work and Pensions
-
State pension boost could help millions – how to plug gaps in your National Insurance recordMore than 2 million people are not receiving the full amount of state pension and potentially could increase how much they get
