ABSTRACT
Developments in the London money markets over a considerable period to 1966 were examined in the previous chapter. Important changes in the activities and assets structure of the traditional discount market were noted, in particular the revival of the commercial bill and the decline of the Treasury bill from the dominant position it had held for so long. Further, and quite separate from the traditional market, were dealings in short-term funds that largely bypassed it, and a number of ‘new’ markets had developed since the late 1950s. These new markets, also designated as ‘secondary’, or more often – and more accurately – as ‘parallel’, were in short-term deposits with local authorities and finance houses, Eurodollars, and inter-bank balances; the principal operators were accepting houses and overseas and foreign banks. The picture there presented in all important respects remains a true one in 1969. But some significant changes have taken place over the past three years, and these are now recorded.
