The Jobbing System of the London Stock Exchange: An Oral History

Ref.No.: 4	Playback No.:   

Interviewee's surname: Le Roy-Lewis	Title: Mr
Interviewee's forenames:  David Henry	
Date of birth: 14 June 1918	Sex: Male

Date(s)  of recording: 20 December 1989, 3 January 1990
Location of  interview:  Home   
Name of  interviewer: Bernard Attard	
Type of recorder: Marantz CP 430
Total no. of tapes: 5	        Speed:
Type of tape: TDK SA 60	Noise reduction: DBX
Mono or stereo:Stereo	Original or copy:  Copy
Additional material:
Copyright/Clearance: CMH (No restrictions)

SUMMARY OF CONTENTS

Tape 1, Side 1:

Birth in Uckfield in 1918; father's career in the City; grandfather's connection with the City; education; trains as an accountant with Touche Ross; family association with Touche Ross; regret at not going to''"university; war service; resumed accountancy training after war; has always anticipated that he would go into the City; employment opportunities after qualifying; asked by David Blackwell if he would join Blackwell & Co; becomes a partner after a short time as a blue button; description of the firm; description of David Blackwell senior; confidentiality of partnerships' affairs; description of the oil market; training as a blue button; partnership; responsibility on the jobbing book; description of the Stock Exchange and the significance of the demolition of the old-Stock Exchange building.

Tape 1, Side 2

The distinction between jobbers and brokers; decline in number of jobbing firms, but increase in the size of firms; periods when markets went dead, eg. experience with Blackwell; necessity to diversify markets in which the firm jobbed; Blackwell takes up Rhodesian Copper shares; Blackwell merges with Akroyd & Smithers; Akroyd's previous experience in the American market; Blackwell/ Akroyd merger provides the model for future mergers by other firms; further comments on Blackwell 's diversification into Rhodesian shares and the other jobbers in the .oil market; mechanics of the merger between Blackwell and Akroyd; management and organisation of the merged firm; implications of unlimited liability; relationship with the firm's bank.

Tape 2, side 1	

Size and market coverage of Akroyd; open outcry in the oil and Kaffir market; more comments on the management of the firm and allocation of capital from book to book; DLL starts jobbing in the gilt market; rise of the institutional investor and impact on the stock market; development of the cult of the equity; contrast of gilt market' with equity market; the first 7 per cent bank rate and its consequences; other main gilt-edge jobbers; relationship with government broker; gilt-edge brokers.

Tape 2, side 2

Relationship between jobbers and brokers in the gilt • market; further comments on the characteristics of the gilt market; demerger between Akroyd and Blackwell; DLL remains with Akroyd and takes increasing responsibility for management of the office; capital shortages encountered by jobbers and relief provided by taxation privileges allowed to partnerships; greater capital required by jobbers; Akroyd never short of capital; Akroyd an unlimited liability company; expansion of Akroyd after demerger with Blackwell; problems caused by the computer of James Case, a firm taken over by Akroyd.

Tape 3, side 1

Further on the 'expansion of Akroyd and mergers with other jobbing firms; size of Akroyd; Akroyd becomes a limited liability company; development of institutional investor and\impact on stock market; flotation of Akroyd the means of securing capital; DLL placed in charge of administration of Akroyd; ceases jobbing after merger with James Case; becomes a member of Stock Exchange Council in 1961; unable to combine this with jobbing; increasing importance of good management of jobbing firms; position of Stock Exchange and Akroyd in 1980/81; contrast between the attitudes of fund managers and jobbers. 

Interview resumed 3 January 1990.	

Tape 3, side 2

How becomes a member of the Stock Exchange Council; representation of jobbers on the Council; difficulty of combining active jobbing with council, membership; operation of the Stock Exchange a bargain between jobbers and brokers; DLL responsible for the administration of Akroyd; description of the Stock Exchange Council in 1950s; DLL part of a group wanting to see younger people on the Council; description of the Council's functions; accountability of the Council; becomes Chairman of the Firms' Accounts Committee; supervises implementation of rule reguiring Stock Exchange firms to produce audited accounts; becomes Chairman of Property and Finance Committee in 1972 and senior Deputy Chairman, 1973-76.

Tape 4, side 1         

Development of regulations allowing firms to trade as limited liability companies and to become listed companies; difficulty for Council in making these decisions; DLL's approach as a committee chairman; DLL responsible for improving the Stock Exchange's financial basis; acts as deputy Chairman under three Stock Exchange Chairman; chairs a Stock Exchange inquiry into the affairs of Sears, House of Frazer and Sir Hugh Frazer; procedure DLL adopts; chairs committee to prepare Stock Exchange evidence to the Wilson Committee; chairs committee to prepare evidence in the case brought by the Office of Fair Trading.

Tape 4, side 2

Evolution of the 'link' argument; chairs a committee to develop a new disciplinary procedure within the Stock Exchange; chairs disciplinary committee; development of the Stock Exchange Council during the period of his membership; DLL had an untypical career as a jobber; member of City Capital Markets Committee established by the Bank of England; involvement with louche Remnant; as Deputy Chairman given responsibility for re-organisation of Touche Remnant; membership of the boards of various companies; inevitability of change in the securities industry; revolution in communications; eg. learns of assassination of Kennedy before his correspondent in New York.

Tape 5, side 1

Impact of communications revolution on securities industry; success of reform of Stock Exchange; recollections of Ken Ritchie, Martin Wilkinson, Graham Greenwell, Jock Hunter; Wilfred Wareham; Douglas McKechnie; Dick Wilkins; Gordon Simpson; Marcus Colby; concluding remarks about his career in the City.