Posted on 11/28/2006 7:55:48 AM PST by L,TOWM
NEW YORK (Reuters) - Wall Street's two main private regulatory arms said on Tuesday they have agreed to merge in a widely anticipated move aimed at reducing industry costs and streamlining oversight functions.
Industry self-regulatory units run by the NASD and NYSE Group Inc. (NYX.N: Quote, Profile, Research), which operates the New York Stock Exchange, will combine self-regulatory operations into a single watchdog overseeing all securities firms doing business with the public in the United States.
The new organization is expected to begin operations in the second quarter of 2007, and will consist of the current 2,400-person NASD organization and about 470 staff in NYSE Regulation's member regulation, arbitration, and related enforcement units.
NASD Chairman and Chief Executive Mary Schapiro will serve as CEO of the combined organization.
The merger has long been sought by the securities industry, whose members have complained the overlap of two major industry-sponsored regulators was too costly and time consuming.
Ping to some that have shown interest in capital markets and regulation.
Compliance costs have skyrocketed in recent years. Up almost 100% in the past 4 years, now exceeding $25 Billion a year! Savings and reduction in, if not elimination of redundency is greatly needed.
Word has it that the firms are getting a $35k bump from the new corp. in '07. Part of the anticipated savings.
And some additional information was just added to the NASD's website:
http://www.nasd.com/RegulatoryConsolidation/index.htm
The name NASD itself will become a thing of the past next year. The consolidated regulatory body will be renamed -- new name to be announced later, per Mary Shapiro.
perfunctory. nyse's staff is redundant (or rapidly becoming so).
Please add me to your "Ping" list. Thank you...
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