Stockjobbers were institutions that acted as market makers in the London Stock Exchange. The business of stockjobbing emerged in the 1690s during England's Financial Revolution. During the 18th century the jobbers attracted numerous critiques from Thomas Mortimer, Daniel Defoe and others. These writers denounced the use of market manipulation and front running and regarded it as unethical that the jobbers made money without any interest in the stocks involved. The business survived repeated[citation needed] legislation to ban it and became institutionalised.
| Stock Jobbing Act 1733 | |
|---|---|
| Act of Parliament | |
 | |
| Long title | An Act to prevent the infamous Practice of Stockjobbing. |
| Citation | 7 Geo. 2. c. 8 |
| Dates | |
| Royal assent | 16 April 1734 |
| Repealed | 14 June 1860 |
| Other legislation | |
| Repealed by | Repeal of Sir John Barnard's Act 1860 |
Status: Repealed | |
| Stock Jobbing Act 1736 | |
|---|---|
| Act of Parliament | |
| |
| Long title | An Act to make perpetual an Act made in the Seventh Year of the Reign of His present Majesty, intituled, "An Act to prevent the infamous Practice of Stock-jobbing." |
| Citation | 10 Geo. 2. c. 8 |
| Dates | |
| Royal assent | 22 April 1737 |
| Commencement | 22 April 1737 |
| Repealed | 14 June 1860 |
| Other legislation | |
| Repealed by | Repeal of Sir John Barnard's Act 1860 |
Status: Repealed | |
| Repeal of Sir John Barnard's Act 1860 | |
|---|---|
| Act of Parliament | |
 | |
| Long title | An Act to repeal the Act of the Seventh Year of King George the Second, Chapter Eight, commonly called "Sir John Barnard's Act," and the Act of the Tenth Year of King George the Second, Chapter Eight. |
| Citation | 23 & 24 Vict. c. 28 |
| Dates | |
| Royal assent | 14 June 1860 |
| Commencement | 14 June 1860 |
| Repealed | 11 August 1875 |
| Other legislation | |
| Repealed by | Statute Law Revision Act 1875 |
Status: Repealed | |
Prior to the "Big Bang" deregulation of 1986, every stock traded on the exchange passed through a 'jobber's book', that is, they acted as the ultimate purchasers of shares sold and the source of shares purchased, by stockbrokers on behalf of the latters' clients. Stockbrokers in turn were not permitted to be market makers.[1]
In the final years of stockjobbing, the leading firms were Akroyd & Smithers, Wedd Durlacher, Pinchin Denny, Smith Brothers, Bisgood Bishop and Charles Pulley.[2] All of these firms were acquired by investment banks and other financial institutions.
References
edit- ^ Philip Auger (2000). The Death of Gentlemanly Capitalism. Penguin.
- ^ "London insiders remember Big Bang". BBC News. 26 October 2006.
Bibliography
edit- Pennecuik, Alexander (1721). An Ancient Prophecy Concerning Stock-jobbing, and the Conduct of the Directors of the South-Sea-Company. Edinburgh: John Mosman.
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