NYSE Approves Measures on Corporate Governance, to Add Trading Floor
Fri Aug 2, 3:27 AM ET
By By Gaston Ceron
NEW YORK -- The New York Stock Exchange ( news - web sites)'s board approved a set of measures aimed at strengthening corporate governance and restoring investor confidence, which has been battered by the recent corporate scandals.
Changes to the NYSE's listing standards had been recommended on June 6 by an NYSE committee on corporate accountability and listing standards, and will now be sent to the Securities and Exchange Commission ( news - web sites) for final approval. In general, the changes will require NYSE-listed companies to have a majority of independent directors on their boards and to submit all stock-option plans to shareholders for approval.
NYSEsaid the exchange is taking another look at the practices of Wall Street research analysts, following a set of earlier rules on analysts that the Big Board had already passed.
Separately,said the exchange has decided to go ahead with plans to break its floor-trading operations into two main pieces. A second trading floor,said, would operate simultaneously with the exchange's current floor on the corner of Wall and Broad streets in Manhattan, and would provide a hedge against any future terrorist attacks.
The location of the new floor and the timing of its construction are still uncertain, butsaid that overall, exchange executives were committed to the plan.
appeared to leave behind the Big Board's longstanding plans to build a new trading floor near its current home.
Plans for this floor were left uncertain after Sept. 11 , after security issues were raised regarding a tower that was to be built above the new floor. Later, talks over the new floor between the NYSE and New York City hit a snag when it was reported that the budget-strapped city wanted the exchange to shoulder more of the project's financial burden.
"That now will happen somewhere else,"said about the exchange's plans for a new trading floor.
He also played down reports that the exchange was considering Westchester County, N.Y ., as the location for a second trading floor. A second floor could be built "anywhere" except in lower Manhattan, including outside of New York City,said.
But he indicated that the NYSE plans to keep a second trading floor within New York state and said the exchange will continue to work with city and state officials on the matter. |
