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Reed backs away from pledge on NYSE regulatory role
New York, Oct 15: New York Stock Exchange Interim Chairman John Reed, who last month said he opposed splitting the exchange`s business and regulatory roles, told investors that he may yet back such a division.
New York, Oct 15: New York Stock Exchange
Interim Chairman John Reed, who last month said he opposed
splitting the exchange's business and regulatory roles, told
investors that he may yet back such a division.
"We did receive positive signals that the door is not
shut to looking at that issue at all," said Jack Ehnes today
at the California State Teachers Retirement System.
Reed had told reporters on September 29, the day he started his new job, that the NYSE's ability to regulate itself was a key "sales tool." Now, he told State Pension Fund officials in a private meeting that he remained open to Change, even an end to self-regulation.
The exchange's role as a regulator is among the most contentious issues reed must resolve because the USD 140 million pay package of his predecessor Richard Grasso was approved by a board of chief executives from the securities firms and listed companies he regulated.
Since 1934, the NYSE has regulated itself, its 1,366 members and activities of the 2,746 listed companies.
As a so-called self-regulatory organization, the NYSE can fine brokers for violating rules that prohibit insider trading, require companies to meet its listing standards and prohibiting listed companies to defect to another exchange.
The Nasdaq stock market separated its regulatory arm, in 1996, after a trading scandal.
Reed was named interim chairman on September 21 after Grasso was ousted. Thereafter, some pension fund managers then called for splitting the regulatory and commercial functions of the exchange.
Bureau Report
Reed had told reporters on September 29, the day he started his new job, that the NYSE's ability to regulate itself was a key "sales tool." Now, he told State Pension Fund officials in a private meeting that he remained open to Change, even an end to self-regulation.
The exchange's role as a regulator is among the most contentious issues reed must resolve because the USD 140 million pay package of his predecessor Richard Grasso was approved by a board of chief executives from the securities firms and listed companies he regulated.
Since 1934, the NYSE has regulated itself, its 1,366 members and activities of the 2,746 listed companies.
As a so-called self-regulatory organization, the NYSE can fine brokers for violating rules that prohibit insider trading, require companies to meet its listing standards and prohibiting listed companies to defect to another exchange.
The Nasdaq stock market separated its regulatory arm, in 1996, after a trading scandal.
Reed was named interim chairman on September 21 after Grasso was ousted. Thereafter, some pension fund managers then called for splitting the regulatory and commercial functions of the exchange.
Bureau Report