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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.
This 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''.
In Britain, the ''Big Bang'' became one of the cornerstones of the Thatcher government's reform programme. Prior to this event, the financial institutions of the City of London were seen as elitist and operated within tight-knit old boys' networks. The ''Big Bang'' brought the free market doctrine of meritocracy to London, allowing a new class of nouveau riche to profit from the economic boom. Today, London is a global financial centre, perhaps the world's most important, and is home to thousands of international institutions.
Subsequent similar actions, such as the deregulation of the Japanese financial markets in 2001, have analogously also been tagged with the phrase ''Big Bang''.

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See also

★ The Wimbledon Effect

References

Revolution hailed but City warned of a looming fight for supremacy staff FT
The day Big Bang blasted the old boys into oblivion Danny Fortson
Revolution hailed but City warned of a looming fight for supremacy Jill Treanor

External links

★ Effects of Japan's Financial Big Bang on Consumers