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. Member Firm

    A broker-dealer in which at least one of the principal officers ...
  3. New York Stock Exchange - NYSE

    A stock exchange based in New York City, which is considered ...
  4. Deregulation

    The reduction or elimination of government power in a particular ...
  5. London Stock Exchange - LSE

    The primary stock exchange in the U.K. and the largest in Europe. ...
  6. Quotation

    A very common term which actually refers to two numbers - the ...
Related Articles
  1. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  2. Principal Trading and Agency Trading
    Investing Basics

    Principal Trading and Agency Trading

  3. Getting To Know The Stock Exchanges
    Options & Futures

    Getting To Know The Stock Exchanges

  4. The NYSE And Nasdaq: How They Work
    Options & Futures

    The NYSE And Nasdaq: How They Work

comments powered by Disqus
Hot Definitions
  1. Correlation

    In the world of finance, a statistical measure of how two securities move in relation to each other. Correlations are used ...
  2. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  3. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  4. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  5. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  6. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
Trading Center