FINWIRE®

NASD, NYSE Regulation merger welcomed by SIFMA

August 1st, 2007

The Securities Industry and Financial Markets Association (SIFMA) have welcomed the United States Securities and Exchange Commission (SEC) approval of merger between NASD and NYSE Regulation.

Marc Lackritz, president and CEO of the Securities Industry and Financial Markets Association (SIFMA) said: “By approving this merger, the SEC helps ensure that America’s markets remain at the forefront of innovation in an increasingly competitive global environment.”

“A single regulator, with a single rulebook and one set of enforcement procedures will reduce redundancy, improve efficiency and build a single, powerful regulator.  These benefits will accrue to investors, firms and the markets themselves, creating a healthier, stronger financial services industry.”

SIFMA first proposed a regulatory merger of the NASD and NYSE Regulation in 2000. 

At the time, exchanges had just started discussing demutualisation, a step which would make the for-profit exchanges the regulators of their competitors – a serious conflict of interest. 

By separating the regulatory arms of the exchanges, these conflicts are dramatically reduced. 

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