Key facts
- The "Big Bang" reforms deregulated the London Stock Exchange.
- Fixed commissions were abolished.
- Brokers and jobbers were allowed to act as dual-capacity firms.
- Foreign ownership rules were relaxed.
- Electronic trading systems replaced open outcry.
- The reforms transformed London into a major global financial center.
The City of London was significantly transformed by the "Big Bang" deregulation that took effect on October 27, 1986. These reforms, part of Margaret Thatcher's financial liberalization program, abolished fixed commissions, merged the roles of brokers and jobbers, relaxed foreign ownership rules, and introduced electronic trading systems. The changes spurred a surge in trading volume, attracted international banks, and solidified London's position as a leading global financial center for various services.