The Big Bang refers to the extensive deregulation of the British financial markets that occurred in London. Initiated by Chancellor of the Exchequer, Nigel Lawson, the reforms aimed to modernize the City of London’s financial sector and make it competitive on a global scale. Central to these changes was the decision to eliminate fixed commission fees for stockbrokers, allowing for a more market-driven pricing structure. Additionally, the introduction of electronic trading systems paved the way for increased transaction speed and efficiency. The reforms were intended to attract foreign investment and enhance Britain's position as a financial hub in Europe and beyond.

The impact of the Big Bang was immediate and profound, with many traditional practices in finance being upended. The deregulation fostered an environment where innovation thrived, ultimately leading to the creation of multiple new financial products and services. Banks expanded their operations, and new players entered the market, increasing competition and changing the dynamics of trading on the London Stock Exchange. This transformation not only reshaped financial practices but also had wider social and economic implications for employment and finance education in the UK.

As the deregulated markets evolved, London solidified its status as a pre-eminent global financial center. The changes also contributed to the boom in the financial services sector throughout the late 1980s, driving economic growth. However, the subsequent years also revealed challenges and risks associated with deregulation, leading to discussions about the need for oversight in the complex financial landscape that had emerged. Still, the Big Bang remains a pivotal moment in the evolution of the UK’s financial markets.