SEC Gives Regulatory Approval For NASD And NYSE Consolidation

The Securities and Exchange Commission have now given final regulatory approval related to the consolidation of the member firm regulatory functions of the National Association of Securities Dealers, Inc. and NYSE Regulation, Inc., a wholly owned subsidiary of New York

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The Securities and Exchange Commission have now given final regulatory approval related to the consolidation of the member firm regulatory functions of the National Association of Securities Dealers, Inc. and NYSE Regulation, Inc., a wholly-owned subsidiary of New York Stock Exchange LLC.

The consolidated organisation will be known as the Financial Industry Regulatory Authority, or FINRA.

“A single regulator, with a single rulebook and one set of enforcement procedures will reduce redundancy, improve efficiency and build a single, powerful regulator,” says Marc Lackritz, president and CEO of the Securities Industry and Financial Markets Association (SIFMA). “These benefits will accrue to investors, firms and the markets themselves, creating a healthier, stronger financial services industry.”

FINRA will be responsible for regulating all securities firms that do business with the public, including with respect to professional training, testing and licensing of registered persons, arbitration and mediation. FINRA also will be responsible, by contract, for regulating The Nasdaq Stock Market, Inc., the American Stock Exchange LLC, and the International Securities Exchange, LLC.

“The consolidation of NASD’s and NYSE’s member firm regulatory functions is an important step toward making our self-regulatory system not only more efficient, but more effective in protecting investors,” says SEC Chairman, Christopher Cox.

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