How the 1986 London Stock Exchange reforms reshaped finance and culture

Recalling his start as a graduate trainee in the mid-1980s, the author describes a London Stock Exchange that operated as an exclusive, male-dominated club with fixed commissions and strict separation between brokers and jobbers. The 1986 deregulation eliminated those constraints, ushering in a wave of competition, soaring salaries and bonuses, and a transformation into a data-focused securities market. The reforms paved the way for modern investment banks, but also contributed to excesses that later manifested in the 1987 crash, the Barings collapse, and the 2007-2010 global financial crisis.

The author argues that continued regulatory vigilance is essential as London faces pressure from New York listings and new technologies such as AI and blockchain. Despite these challenges, the City’s ability to adapt has kept it a leading global financial hub.