NASD member firms have approved By-Law changes to consolidate NASD and NYSE member regulation functions into one self-regulatory organisation. The decision is a move to end duplication and strengthen the competitiveness of American markets. “The securities industry has embraced replacing an outdated regulatory structure with one that better serves firms and investors in a fast-changing marketplace,” says Mary L. Schapiro, NASD chairman and CEO. “Firms took the lead in shaping the future of self-regulation, and I applaud them for the mandate they gave this consolidation. I appreciate that so many NASD members took the time to study the proposal and to participate in the voting process.”
The election results showed almost 83 percent of the 5,058 firms eligible to vote cast a ballot, and 64 percent supported the change.
The new SRO, which has not yet been named, will consist of the current 2,440-person NASD organization and around 470 members from the NYSE regulation, arbitrage and related enforcement team.
The plan, still subject to approval by the Securities Exchange Commission, is designed to create a single regulator for the US’s broker-dealers. It is expected to eliminate overlapping regulation and reduce industry cost.