Article Abstract:
The London Stock Exchange's Big Bang of deregulation, scheduled for October 27, 1986 will: eliminate fixed commissions, allow certain members to operate as both brokers and jobbers, facilitate future growth on the exchange (more memberships available), and allow foreigners to enter the market freely (the other two main financial centers for the world, New York and Tokyo, restrict foreigners' operations). The effects of these changes on London's financial services industry are discussed, and several new corporate affiliations and mergers are identified that result from the Big Bang. Also discussed are: the replacement of bank lending with securitization as the leading corporate financing technique, primary and secondary trading, discount houses on the exchange, the larger amounts of capital required to operate on the deregulated exchange, computerization of the exchange's main board (eliminating the need for floor trading), and the planned electronic quotation system (SEAQ - Stock Exchange Automated Quotations) that will cover the London Stock Exchange, NASDAQ, European exchanges, currency exchange rates in North America and Europe, and the London International Financial Futures Exchange. SEAQ should become operable coincident with the Big Bang.
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Article Abstract:
A drastic oil price decline in 1986 resulted in unemployment averaging 17% in the Highlands and Islands region of Scotland, with as many as 10,000 jobs or more lost in North Sea oil and oil-related industries. The area has 350,000 residents. The Highlands and Islands Development Board (HIDB) is spending 37.5 million pounds sterling annually in grants, loans, equity, and advice to new and developing firms in this region. Businesses who supported the oil industry are retargeting their construction, service, and high-technology skills to other markets, as is exemplified by Osprey Electronics. Some firms have expanded into the region to take advantage of skilled labor and other opportunities, as demonstrated by Furness Controls. HIDB directly encouraged the growth of fish farming in the area, and over 1,000 jobs have been created.
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Article Abstract:
Electronic funds transfer at point of sale (EFTPOS) raises complex issues. Payment systems now in use such as checks, credit cards, or automated teller machines are labor-intensive and not completely satisfactory in preventing fraud. The Scottish and English clearing banks set up a company in 1985, EFT- POS, as an electronic clearing system that would accept both debit and credit transactions. The system operates 24 hours per day, seven days per week, and would enable a transaction to be completed in a few seconds. Many retailers want to test the system before adopting it. EFTPOS developments in the European Economic Council are also discussed.
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