Stockjobber

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
Parliament of Great Britain
Long title	An Act to prevent the infamous Practice of Stockjobbing.
Citation	7 Geo. 2. c. 8
Territorial extent	Great Britain
Dates
Royal assent	16 April 1734
Commencement	1 June 1734[a]
Repealed	14 June 1860
Other legislation
Amended by	Stock Jobbing Act 1736
Repealed by	Repeal of Sir John Barnard's Act 1860
Status: Repealed
Text of statute as originally enacted

Stock Jobbing Act 1736
Act of Parliament
Parliament of Great Britain
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
Territorial extent	Great Britain
Dates
Royal assent	22 April 1737
Commencement	1 February 1737[b]
Repealed	14 June 1860
Other legislation
Amends	Stock Jobbing Act 1733
Repealed by	Repeal of Sir John Barnard's Act 1860
Status: Repealed
Text of statute as originally enacted

Repeal of Sir John Barnard's Act 1860
Act of Parliament
Parliament of the United Kingdom
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
Territorial extent	United Kingdom
Dates
Royal assent	14 June 1860
Commencement	14 June 1860[a]
Repealed	11 August 1875
Other legislation
Repeals/revokes	Stock Jobbing Act 1733 Stock Jobbing Act 1736
Repealed by	Statute Law Revision Act 1875
Status: Repealed
Text of statute as originally enacted

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.

Notes

1. Section 1.
2. Start of session.