The phrase Big Bang, used in reference to the sudden deregulation of financial markets, was coined to describe measures, including abolition of fixed commission charges and of the distinction between stockjobbers and stockbrokers on the London Stock Exchangeand change from open-outcry to electronic, screen-based trading, enacted by the United Kingdom government in 1986.
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The effects of Big Bang were dramatic, with London’s place as a financial capital decisively strengthened, to the point where it is arguably the world’s most important financial centre even to the present day. An economic boom created a new class of nouveau riche that has persisted for two decades, and the boom expanded beyond the City into new developments in the Isle of Dogs area, particularly that of Canary Wharf. Deregulation stimulated financial innovation and enabled new entrants to provide services.
Some critics have charged that the deregulation, and the atmosphere that it created, were responsible for such scandals as theBarings collapse, although others argue the opposite, that the failure to disestablish the old boys’ networks completely was to blame.