Within the past few years the London Stock Exchnge went from a broker
based "auction" trading system (similar to the NYSE) to an electronic
system with individual brokers.  I would like obtain some information
as to how this transition occurred, and how quickly the system went
from a people-based broker system to a fully electronic system.

The transition from face-to-face trading in pits to a full electronic
system took place in two phases.  In 1986, as part of extensive
deregulation known as the "Big Bang," "...London became one of the
first financial centres to see trading move out of the pits, off the
market floor and on to the telephone.

This was achieved by using a screen-based electronic bulletin board
known as Seaq (Stock Exchange Automated Quotations system).

Trading is quote-driven: market makers 'quote' a share price,
effectively competing with each other to display the best prices."

Full electronic trading was introduced in 1997.  "On October 27, 1997
the London Stock Exchange completed its electronic revolution in
trading when it replaced the Seaq system with Sets - Stock Exchange
Electronic Trading - for the top 100 shares.

Sets's electronic order book means trades are conducted less and less by telephone.

Instead, orders to buy and sell shares are displayed and matched on a
computer screen. This is designed to give a better picture of what is
happening in the market."

"London Stock Exchange" BBC News (October 30, 1999)
http://news.bbc.co.uk/1/hi/business/business_basics/86557.stm

The move to an automated trading system occurred very quickly, going
from a proposal in January 1996 to being operational in October 1997. 
"Officials Unveil Options for Trading System: London Exchange Moves
On" By Erik Ipsen, International Herald Tribune (January 13, 1996)
http://news.bbc.co.uk/1/hi/business/4112403.stm

Additional articles you may find of interest:

"From UK coffee house to bourse?" By Joia Shillingford, BBC News
(December 21, 2004) http://news.bbc.co.uk/1/hi/business/4112403.stm

"Our History" London Stock Exchange (2005)
http://www.londonstockexchange.com/en-gb/about/cooverview/history.htm

"Death of the floor trader" BBC News (April 30, 2001)
http://news.bbc.co.uk/1/hi/business/1304989.stm

Sincerely,

Wonko

Search terms: London Stock exchange electronic

Just as a comment: for sure with the Internet becoming more and more
of a vehicle for on-line investments and banking, more electronic
brokerage of all sorts has become easily available to people. Forex
trading on-line was also not available 10 years or more ago, but now
is fully common. Not an answer, but my 2 cents anyway.