What is a Jobber?
A jobber is a slang term for a market maker on the London Stock Exchange before October 1986. Jobbers, also called “stockjobbers”, acted as market makers. They held stocks in their own books and created liquidity in the market by buying and selling securities, and matching buy and sell orders from investors through their brokers, who were not authorized to make contracts. The term “jobber” is also used to describe a small wholesaler or an intermediary in the retail trade.
Little is known about the activities of jobbers because they kept few records, but in the early 19th century, London had hundreds of jobbing businesses. The number of Jobbers declined dramatically during the 20th century until they ceased to exist in October 1986. This month was the “Big Bang”, a major change in the operations of the London Stock Exchange. London’s financial sector was suddenly deregulated, fixed commissions were replaced by negotiated commissions and electronic commerce was introduced.
This jobber system evolved into a modern form recognizable during the 19th century, as the range of types of titles widened. At least half of the members of the London Stock Exchange have started to specialize in creating a continuous market in one of the main types of these securities. The distinction between these market makers, or jobbers, and brokers who dealt with them on behalf of the public was clear, but was mainly based on custom and tradition until 1909, when the unique capacity was formally incorporated into the London Stock. Exchange rules. In 1914, more than 600 job creation companies existed, as well as many one-man job creation operations.
These numbers have steadily declined as the institutional investor supplanted the private investor, and the amount of capital required for job creation has increased considerably. On the eve of the Big Bang, there were only five large job creation companies on the London Stock Exchange, although this numerical decline did not necessarily indicate a decline in market value supplied by the system.
Jobbers left few documents on their affairs. Neither journalists nor other observers kept many detailed details of their work. The backgrounds of banks, brokerage firms and other concerns have been and will continue to be the basis of any historical record regarding jobbers. The Center for Metropolitan History has compiled archives of interviews with former jobbers that constitute a permanent record of the past half-century of a distinctive part of London’s financial life.