London financial-market Big Bang

Conditions at the time

Institutional reform was pursued to improve the exchange’s competitiveness and efficiency.

How events unfolded

On 10/27, fixed minimum commissions and single-capacity trading rules were abolished.

Stakeholders and impacts

Exchange members, investors and the Bank of England adapted to new trading and settlement structures.

Information available at the time

The 1986 annual report explained the scheduled reform date and changes in company-ownership rules.

Findings confirmed later

Bank records confirm that the new government-bond settlement service expanded in time for the Big Bang.

Alternative interpretations and limitations

Market opening and computerized settlement are related but not the same institution; long-term effects are not attributed to a single date.

Source-based context and interpretation

The Bank of England's follow-up account describes a gilt-settlement service expanded at Big Bang to connect stock transfers with assured payments between members. Implementing new trading and commission arrangements also required changes in post-trade infrastructure. ASSETCASTING interpretation: Assess deregulation through the connection between trading, settlement and supervision rather than turnover alone. This record concerns gilt settlement; it does not establish lower costs or long-term stability across every financial product.

Evidence coverage through 1987-03-01 · Sources checked 2026-10-14

• Gilt-edged settlement: Phase 2 of the CGO Service ↗

Related events and periods1

• Disinflation and expanding financial-market connections →

  An event or period whose recorded start falls within this editorial interval. This does not establish that it caused or represents the characteristics of the era, nor guarantee that the entire period falls within the interval.