The NASD and the NYSE Group said Tuesday they intend on combining their regulatory operations, creating a single private overseer for all stock market activity in the United States. The new organization, which has not yet been named, is expected to begin operation next year, the NYSE Group said in a press release.
The new regulator will retain all of NASD’s 2,400-person regulatory team, as well as 470 of the NYSE Group’s operation. NYSE’s regulation chairman, Richard G. Ketchum, will serve as interim chairman of the combined operation for three years, while NASD’s chairman and chief executive, Mary L. Schapiro, will serve as C.E.O.
Earlier this year, the Securities and Industry Association, Wall Street’s trade and lobbying group, said it favored eliminating duplication by creating one regulator with one set of rules and interpretations to govern the industry. The association also sought a seat for itself on the board of whatever regulator emerged.
Go to NYSE Group Press Release »