NYSE looks to regulatory joint venture

Author: | Published: 1 Dec 2005

The prospect of greater harmonization in US securities regulation was raised last month, following remarks by John Thain, chief executive of the New York Stock Exchange (NYSE).

In a speech to the annual conference of the Securities Industry Association (SIA), Thain said the Exchange is looking at ways in which it could reduce levels of duplicated regulatory oversight in the US financial markets, including a possible combination with NASD, formerly known as the National Association of Securities Dealers.

At the moment 180 broker-dealers are members of both the NYSE and NASD. Each organization sets its own rules for members, conducts examinations and takes enforcement actions. Members pay two sets of regulation fees and often have to undergo multiple inspections to make sure they comply with two sets of rules.

Many securities firms complain that this system is inefficient, and Thain said that reducing regulatory duplication has been a priority...