P254 CEEFAX 254 Sun 26 Oct 05:34/48 1/5 ! "£ THE BIG BANG On October 27 the City of London will bj hit bz the Big Bang. What does this mean and how does it affect you? It is basically a major shake-up of the Stock Exchange to improve efficiency. The old distinction between stockbroker (retailer) and stockjob"jr (wholesaler) will ko. And at the same time, the minimum price structure that has protected brokers' commissions is being dismantled. MoreP254 CEEFAX 254 Sun 26 Oct 05:38/34 2/5 ! "£ THE BIG BANG The Big Bang is designed to ensure that London rem!ins one of the world's three main financial centres. As such, it will have to adopt a more international role, something that the "deregulation" of the Stock Exchange should help it achieve. Electronics will play a big part in this process. New computer technology has been introduced to make a kloRal financial market possible. T MoreP254 CEEFAX 254 Sun 26 Oct 05:35/37 3/5 I ! "£ THE BIG BANG AND THE SMALL INVESTOR The main effect of the Big Bang will bj increased competition within the stock market. With this in mind, Which? magazine is advising people to bj careful when buying and selling stocks and shares. As the minimum commission has been abolished, charges for the small investor may ko up. So Which? says you should check the costs before you dial in shares. MoreP254 CEEFAX 254 Sun 26 Oct 05:36/41 4/5 W THE BIG BANG AND THE SMALL INVESTOR Be wary of advice from stockbrokers after the Big Bang, says Which It points out that from October 27 there will be a potential conflict for stockbrokers as they will bj buyers, sellers and dealers. The Stock Exchange has revised its rules to cope with these conflicts of interest and the new Financial Services legislation, scheduled for next spring, iu planned to give extra protection. MoreP254 CEEFAX 254 Sun 26 Oct 05:37/23 5/5 W THE BIG BANG AND THE SMALL INVESTOR Which? magazine also warns the public about compensation arrangements after the Big Bang. At present, if a Stock Exchange member fails, compensation is unlimited. But after the Big Bang, an upper limit on compensation for losses will be imposed Which? concludes bz advising small investors to be extra vigilant in their dealings after the Big Band. More