The date of May 1, 1975 when the United States abolished fixed minimum brokerage commissions in securities markets, “giving masses of average American investors a potent whiff of freedom”. Many commentators opine that this day was all about creative destruction of rules that had been in place for generations.

On this day, the U.S. Securities and Exchange Commission (SEC) mandated the deregulation of the brokerage industry, scrapping high fixed fees for trading stocks and allowing market competition to dictate commissions. The deregulation paved the way for an entire new industry, i.e. discount brokerage, in which everyday investors were allowed to buy and sell securities without a stockbroker, making their decisions themselves. The rise of discount brokerage led to a steady drop in the cost of trading stock that continues unabated today.

The May Day is comparable to the 1986 “Big Bang” in the United Kingdom.