'Big Bang' rehearsed
NZPA-Reuter London Dealers in the the City, London’s financial centre, put aside their golf clubs at the week-end and spent the time in vigorous trading preparing for the “Big Bang.” Bank of England officials said the dealers had staged a successful rehearsal for radical changes in the Stock Exchange that will follow market deregulation next month, the so-called “Big Bang.”
For several hours on Saturday morning, the
City buzzed with activity as dealers tested their computers and trading skills for October 27.
Under the planned deregulation, the distinction between “jobbers,” traders working on the exchange floor, and “brokers,” who represent share buyers, will be dropped and set commissions for transactions will be abolished. The Government bond market will switch to an electronic trading system and prices will be made by 27 primary dealers.
During the week-end exercise, the Bank of England gave each primary dealer make-believe portfolios and clients and bombarded dealing rooms with economic statistics to simulate ordinary trading conditions. The trial also involved inter-dealer brokers, who primary dealers will use to make deals among themselves, and brokerdealers who do not set prices but can trade on behalf of customers. A second rehearsal is set for October 18.
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Press, 30 September 1986, Page 21
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202'Big Bang' rehearsed Press, 30 September 1986, Page 21
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