P254 CEEFAX 254 Mon 27 Oct 21:11/40 1/5 ! "£ THE BIG BANG The Big Bang has hit the City of London. So what does this mean and how does it affect you, the consumer? It is basically a major shake-up of the Stock Exchange to improve efficiency. The old distinction between stockbroker (retailer) and stockjobbjr (wholesaler) has gone. And at the same time, the minimum price structure that has protected brokers' commissions has been dismantled. MoreP254 CEEFA( 254 Mon 27 Oct 21:18/39 2/5 ! "£ THE BIG BANG The Big Bang is designed to ensure that London remains one of the world'u three main financial centres. As such, it must adopt a more international role, something that the "deregulation" of the Stock Exchange should help it achieve. Electronics now plays a big part in this process. New computer technology has been introduced to make a global financial market possible. MoreP254 CJEFAX 254 Mon 27 Oct 21:19/24 3/5 ! "£ THE BIG BANG AND THE SMALL INVESTOR The main effect of the Big Bang is seen to bj the increase in 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 go up. So Which? says you should check the costs before you dial in shares. MoreP254 CEEFAX 254 Mon 27 Oct 21:23/11 4/5 '!/"£ THE BIG BANG AND THE SMALL INVESTOR Be wary of advice from stockbrokers now, says Which? It points out that now there will bj 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, is planned to give extra protection. MoreP254 CEEFAX 254 Mon 27 Oct 21:17/10 5/5 THE BIG BANG AND THE SMALL INVESTOR Which? magazine also warns the public about compensation arrangements after the Big Bang. Previously, if a Stock Exchange member failed, compensation was unlimited. But now, an upper limit on compensation for losses has been imposed. Which? concludes it summary of the effects of the Big Bang bz warning small investors to be more careful than ever before. More