Brokerages Approve NASD, NYSE Plan for New Securities Regulator
By David Scheer and Jesse Westbrook
Jan. 21 (Bloomberg) -- NYSE Group Inc. and NASD won approval from brokerages to form a single regulator for the U.S. securities industry, overcoming opposition from a group of small firms.
Sixty-four percent of NASD members approved combining it with the NYSE's regulatory operations to create a single watchdog, NASD said in a statement today. NASD, a private-sector provider of financial regulatory services comprised of 5,058 brokerage firms, said almost 83 percent of eligible members voted during the 33-day election period.
``It's a great step forward for efficient and effective regulation,'' Securities and Exchange Commission Commissioner Paul Atkins said in an interview before the results were announced. ``The more duplication you have out there, it makes life more complicated and more costly.''
The merger, first announced on Nov. 28, was backed by Wall Street's biggest firms, who cited the cost and redundancy of complying with rules enforced by two industry watchdogs. Regulators, including SEC Chairman Christopher Cox, said the change would improve policing of financial markets.
The merged organization will comprise NASD's 2,400 workers and about 470 employees from the NYSE's member regulation, arbitration and enforcement teams, NASD said in the statement. The name of the new company hasn't been decided.
To contact the reporter on this story: David Scheer in Washington dscheer@bloomberg.net |
