The Jobbing System of the London Stock Exchange: An Oral History
Ref.No.: 23	Playback No.: 

Interviewee's surname: Parry	Title:  Mr
Interviewee's forenames: David William
Date of birth:    7 February 1932	sex:  Male

Date(s) of recording:  15 May 1990
Location of interview:  Institute of Historical Research
Name of interviewer:   Bernard Attard
Type of recorder:   Marantz CP 430
Total no. of tapes:       2   Speed:
Type of tape:    TDK AR 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

Personal and family background; father a broker; attitude to money in family; education; early ambition to be a forester; unable to get into university; conditions in the Stock Exchange post-War; many of father's clients are country brokers; father is a half-commission man; works with Wedd & Owen for short time prior to National Service; returns to Wedd & Owen after National Service; father's attitude to David Parry entering Stock Exchange, and to jobbers; distinction between jobbers and brokers; description of Wedd & Owen; scale and type of business; bond washing; switching; spends six months with a broking firm; work as a blue button; gilt market in the 1950s; jobbers' profitability cycle; becomes a partner in Wedd & Owen; membership of Stock Exchange; jobbers who influenced David Parry; confident about becoming a dealer.

Tape 1, side 2

Wedd & Owen pitch; partners' attitude to holidays; firm does not deal in short market; gilt-edge brokers; relationship with brokers; spoon-fed jobbers; relationship between large and small jobbers; 'book straightening' amongst small jobbers; cross books; position taking and the problem of capital; undoing positions; leaves Wedd & Owen because of disagreement over amount of capital putting into the firm; attitude of partners to running the firm; changes in the gilt market; Bank Rate Tribunal; moves to Bruce & Hinton; unusual to change firms; jobbers' attitude to the Bank Rate Tribunal; comparable leaks of sensitive information; contrast of Bruce & Hinton with Wedd & Owen; method of operating in tap stocks; assistance of Government broker and large jobbers in sorting out positions.

Tape 2, side 1

Relationship with brokers; increase in number of professional brokers in-market; concern of Government broker and Bank of England about the decline in the number of jobbers; more on relationship with brokers; description of typical day in the 1960s; meeting with partners in a club before Stock Exchange opens; earlier; pre-opening telephone enquiries; dealing in tap stocks; factors involved in making a price; information provided by brokers; backwardations and choice prices; bull and bear jobbing; lunches and entertainment; handing over from one dealer to another; dealing after hours; Bruce & Hinton back office; relationship with back office; settlement problems; capital problems at Bruce & Hinton and possible solutions; neutral zone stocks; decision to close the firm; fears that large gilt jobbers are becoming a cartel; still possible to bridge the gap between large and small gilt jobbers.

Tape 2, side 2

Pinchin's entry into the gilt market; decision to become a broker; how obtains positions with Laurie Milbank and Panmure Gordon; work as a broker dealer; reaction to David Parry becoming a broker; advantages of jobbing experience; clients' understanding of the jobbing system; effect on brokers of contraction of number of jobbing firms; did not need a large number of jobbing firms; Panmure remains an agency broker; Smith Brother's attempt to get involved in the gilt market; Eurobonds; qualities of a successful jobber; strengths of the jobbing system; weaknesses; undercapitalisation; clients' complaints directed at fixed commissions.