In 1984 the securities industry, and The Stock Exchange in particular, faced changes that were more sweeping and fundamental than at any previous time in its history. In that year the Council of The Stock Exchange introduced regulations for a new dealing structure, which eliminated the long-standing separation of stockjobbers and stockbrokers. Both British and overseas financial institutions negotiated arrangements to acquire member firms of their choice with the objective of building integrated investment houses on the American pattern. Certain investment institutions similarly offered to take minor stakes in stockbroking firms to ensure their commercial viability under the conditions that are likely to obtain in the future. The finest brains in the City of London were harnessed to design a blueprint for a tenable regulatory structure. And no one, least of all the major investment institutions, appeared to be very happy with the prospect. It is worth asking: ‘Why did it all happen?’
KeywordsFair Trading Stock Exchange Investment Institution Competition Policy Member Firm
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