MONTH END Exchanging places This month we walk down Memory Lane into the City of London

It was the best of times, companies. We didn’t even onto the floor at 3.30pm to it was the worst of times. have the FTSE 100 index. announce a new ‘tap stock’. The London Stock Instead, we had the FT 30 – Tradition, dear boy, tradition. Exchange announced recently which was a geometric average Brokers made their money that it is considering a merger of the share prices of 30 large by charging their clients a of ‘equals’ with its larger companies, dating back to commission based on the affected their company’s rival, Deutsche Börse. If that 1935. It was calculated every value of the trade. The rate share price. happens, then I, for one, will hour. (Well, why would you of commission was a rigid, The government’s ‘Big lament its passing: I began want an index updated every City-wide sliding scale. There Bang’ reform package in 1986 SHUTTERSTOCK my working life in 1982 as second?) Goodness knows was no price competition abolished fixed commissions, a trainee stockbroker… why, but it’s still published. – brokers were expected to turned jobbers into ‘market As part of my training, The stock exchange compete on ‘service’ (for makers’, merged them with I spent a month as a ‘blue floor was little more than which read lunch, rugby broking firms and allowed button’ on the stock exchange a ridiculous old-fashioned tickets, Henley) and the worth huge banks to buy the whole floor. Blue buttons were men’s club. Women were of their share tips. lot up. Partners made a mint; unauthorised clerks, so allowed to enter the stock It was the days when a many retired. Younger brokers called because they wore a exchange in 1973, but by the fund manager would call his wailed that their ‘birthright’ button that was blue. The job time I first walked through broker at around 4pm with to a partnership had been of a blue button was to run the doors at Throgmorton an order to deal in 20,000 sold. The banks lost millions. around to the various stock Street nine years later, very shares in some stock or other. The fun disappeared. And the London Stock Exchange started sliding down the The stock exchange floor was little more slippery slope to where it finds than a ridiculous old-fashioned men’s club itself today. jobbers, who stood by their few women had chosen to join “Sorry, did you say buy or sell hexagonal pitches, and ask the ranks. 20,000?” asked a broker once. them for the latest prices Practical jokes and rude “Whichever’s easier,” came on whatever shares the office ones were common, though the reply. The purpose was ‘upstairs’ wanted to enquire the whiff of ‘health and safety’ simply to give the broker a about. It was all terribly had put an end to the practice trade on which to earn a crust Andrew Sawers inefficient. It was also quite of setting fire to a jobber’s as a ‘thank you’ for that day’s is a freelance business and financial journalist. a lot of fun. newspaper as he stood lunch at The Long Room. He is a former editor Obviously, there were reading the Financial Times. Few pensioners knew that of Financial Director no mobile phones; we used If the government needed to that’s how their investments and has worked on Accountancy Age, walkie-talkies to talk to the borrow more money (paying were managed. Few finance Business Age and office. British Telecom was some 13% for the privilege), directors or treasurers knew Commercial Lawyer. still state-owned. ICI and GEC then a distinguished man that these were the sorts of He tweets as were the country’s leading in a silk top hat would come market transactions that @Mr_Numbers

The highlights of the April 2016 issue of The Treasurer include: The John Lewis Partnership's group head of treasury discusses the challenges his team faces, on page 20. We delve IN THIS into the world of non-corporate treasury, on page 28. Find out how economic growth is ISSUE: affecting the south-south corridor, on page 30. We take a look at UK companies' sustainable development, on page 38. How can your networks help you land a new job? See page 44.

50 The Treasurer April 2016 www.treasurers.org/thetreasurer