imported>Doug Williamson |
imported>Doug Williamson |
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| 1.
| | A stream of - usually fixed - periodic coupons payable and receivable, which can be valued as a simple annuity in the case of fixed coupons. |
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| ''UK - London Stock Exchange''
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| 'Big Bang' refers collectively to three major changes at the London Stock Exchange which took effect on 27 October 1986:
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| *The introduction of negotiated brokerage commissions, rather than the fixed commission system previously in force.
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| *Allowing members both to make markets and to act as brokers ('dual capacity'), rather than being restricted to one role or the other ('single capacity') as in the past.
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| *Widening of membership and ownership rules, allowing foreign banks to enter the market.
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| There was also a significant change to introduce electronic trading, replacing the previous 'open outcry' system.
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| These changes led to a period of rapid expansion, as foreseen and intended by the UK government at the time, led by Prime Minister Margaret Thatcher.
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| Some commentators link Big Bang with subsequent excessive risk taking - especially the use of bank depositors' funds for speculative activities - contributing to the conditions which led to the Global Financial Crisis of 2007/08 and onward.
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| 2.
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| By extension, the term 'Big Bang' is also used to refer more generally to the changes in - and expansion of - financial markets in the UK (and elsewhere) in the mid-1980s.
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| 3.
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| By analogy, similar sudden changes in - and expansion of - other markets are also sometimes known as 'Big Bang' events.
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| ''The source of the term 'Big Bang' is in cosmology. The widely-accepted Big Bang Theory is that the universe originated from a tiny fireball which exploded with great speed and violence around 14 billion years ago, expanding and cooling to form galaxies, stars and planets.''
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| == See also == | | == See also == |
| *[[Broker]] | | * [[Coupon]] |
| *[[Broker-dealer]] | | * [[STRIPS]] |
| *[[Global Financial Crisis]]
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| *[[Institute of Business Ethics]]
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| *[[London Stock Exchange]]
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| *[[Market maker]]
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| *[[Open outcry]]
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