New Beginnings: The Second World War, 1939–1945

Ranald C. Michie

in The London Stock Exchange

Published in print April 2001 | ISBN: 9780199242559
Published online November 2003 | e-ISBN: 9780191596643 | DOI:
 New Beginnings: The Second World War, 1939–1945

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The first part of this chapter discusses the institutional response of the London Stock Exchange to the long‐expected outbreak of the Second World War––a response that, unlike that to the First World War, had been planned. The various aspects discussed include the planning and operation of the agreements made between the Exchange and the Treasury and the Bank of England (which ceded ultimate power to the Treasury, and ultimately led to a post‐war compromise on the relative power of the government and Exchange over the securities market) and plans to physically relocate to the Denham film studios (subsequently abandoned). The rest of the chapter discusses the effects of the war on membership and the new rules on rebates, and competition––aspects covered include North American brokerage houses in London, foreign business, the market for domestic securities, provincial stock exchanges, country jobbing, the Stock Exchange ban on account trading, Treasury refusal to give permission for markets in various issues, and securities values.

Keywords: account trading; Bank of England; Britain; competition; country jobbing; domestic securities; economic history; foreign business; government control; history; institution; London Stock Exchange; membership; North American brokerage houses; planning; provincial stock exchanges; Second World War; securities market; securities values; Treasury

Chapter.  18658 words. 

Subjects: Economic History

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