Big Bang

AAA

DEFINITION of 'Big Bang'

The day of deregulation for the securities market in London, England on October 27, 1986, in which the London Stock Exchange (LSE) became a private limited company. The event revitalized the LSE because outside corporations were allowed to enter its member firms and automated price quotation was established.

INVESTOPEDIA EXPLAINS 'Big Bang'

Before Big Bang, the LSE was trailing the other major exchanges in the world. At the time, the New York Stock Exchange (NYSE) was listed as the No.1 market worldwide, determined by turnover rate. London was only able to turn over one-thirteenth of the volume transacted by the NYSE. The electronic trading system helped improve London's turnover because orders were now accepted by telephone and computer.

RELATED TERMS
  1. Government Broker

    A senior British stockbroker who works for the U.K. government. ...
  2. London Stock Exchange - LSE

    The primary stock exchange in the U.K. and the largest in Europe. ...
  3. Deregulation

    The reduction or elimination of government power in a particular ...
  4. Quotation

    A very common term which actually refers to two numbers - the ...
  5. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  6. Member Firm

    A broker-dealer in which at least one of the principal officers ...
Related Articles
  1. Investing Basics

    Stock Basics Tutorial

    If you're new to the stock market and want the basics, this is the tutorial for you!
  2. Investing Basics

    Principal Trading and Agency Trading

    Ever wonder what happens behind the scenes when you buy or sell a stock? Read on and find out!
  3. Options & Futures

    Getting To Know The Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask!
  4. Options & Futures

    The NYSE And Nasdaq: How They Work

    Learn some of the important differences in the way these exchanges operate and the securities that trade on them.
  5. Economics

    The Stock Market: A Look Back

    The past century was marked by furious economic change. What can it tell us about what lies ahead?
  6. Trading Strategies

    Risk Management Techniques For Shorting Call Options

    Shorting covered calls is a popular options trade strategy. Here are the methods to mitigate the risk/loss and enhance profits for selling covered calls
  7. Fundamental Analysis

    Making Sense Of The Dow Reaching Record Levels

    When gauging the Dow's shifts in order to assess the U.S. economy and make investment decisions, one must know what the Dow represents,and what it doesn't.
  8. Technical Indicators

    What is a common strategy traders implement when using the Haurlan Index?

    Understand the fundamental dynamics behind the Haurlan Index and read about trading strategies based on its three component lines.
  9. Trading Strategies

    What are the most common strategies for using the Absolute Breadth Index (ABI)?

    Read about some of the ways in which technical investors use the absolute breadth index to measure whether a market trend is bearish or bullish.
  10. Investing Basics

    What Does The Dow Jones Industrial Average (DJIA) Quote Represent?

    “The Dow” is regarded as the “pulse of the stock market,” as it is one of the most quoted and followed stock market indices by investors, market professionals and media.

You May Also Like

Hot Definitions
  1. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  2. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
  3. Federal Funds Rate

    The interest rate at which a depository institution lends funds maintained at the Federal Reserve to another depository institution ...
  4. Fixed Asset

    A long-term tangible piece of property that a firm owns and uses in the production of its income and is not expected to be ...
  5. Break-Even Analysis

    An analysis to determine the point at which revenue received equals the costs associated with receiving the revenue. Break-even ...
  6. Key Performance Indicators - KPI

    A set of quantifiable measures that a company or industry uses to gauge or compare performance in terms of meeting their ...
Trading Center