Prelude to Change, 1970–1979

Ranald C. Michie

in The London Stock Exchange

Published in print April 2001 | ISBN: 9780199242559
Published online November 2003 | e-ISBN: 9780191596643 | DOI:
 Prelude to Change, 1970–1979

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The first section of this chapter outlines the growing threats to the London Stock Exchange through the 1970s, including the ability of its members to block new proposals by the Council of the Stock Exchange, the investigation by the Monopolies Commission into the various restrictive practices of the Stock Exchange, relations with and attitude of the government, the formation of the Council of the Securities Industry (CSI), which was to take over responsibility for the Stock Exchange and other components of the securities market. The second section of the chapter discusses the limited responses of the Stock Exchange to these threats. The next two sections discuss technology and competition (from computerized trading systems), and change among the members (mergers, which resulted in a disproportionately large number of large firms as members, and a loss in numbers of jobbers). The last section looks at market opportunities––domestic corporate securities, government debt securities, loss of the foreign securities, traded options, the collapse of the securities market in 1974, and the by‐now limited role of the money market.

Keywords: Britain; capital market; competition; computerized trading systems; corporate securities; Council of the Securities Industry; domestic securities; economic history; foreign business; foreign securities; government control; government debt securities; history; international business; London Stock Exchange; members; money market; Monopolies Commission; restrictive practices; securities market; technology; threats; traded options market

Chapter.  31565 words. 

Subjects: Economic History

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