|  | | 2005 News and Press Releases | | |
HEADLINE NEWS:
NASD Suggests Joint Effort On Oversight
Staff Writer – Reuters
The New York Times. November 12, 2005
_________________________________________________________________________
EXCERPT: More efficient industry regulation by NASD and the New York Stock Exchange could save American brokers more than $100 million a year, the chief executive of NASD said Friday. NASD is planning to work with the New York Stock Exchange to determine how to regulate more efficiently the 180 dealers overseen by both entities, Robert R. Glauber, chairman and chief executive of NASD, told an industry conference. The savings from a combined stock exchange and NASD effort could save brokers $50 million a year in regulation fees and at least another $50 million a year in compliance costs, Mr. Glauber said. ''The focus is on the 180 firms that are regulated twice -- they have two rule books and two sets of examinations,'' Mr. Glauber said. ''We can do something to get rid of that redundancy and seriously cut that cost, which is ultimately borne by investors.'' Mr. Glauber said the next step was to have talks with New York Stock Exchange officials, including the chief executive, John A. Thain, and the chief regulatory officer, Richard G. Ketchum. Mr. Thain said earlier that the stock exchange and NASD were still in the early stages of determining how to work together, but were considering options, including dividing up which brokers the two entities examine, creating a joint venture, or alternating the examination of brokers from year to year. Several securities brokers are considering dropping their stock exchange memberships to reduce the burden of working with different sets of securities rules and regulators, trade group officials said. Some firms, notably the Charles Schwab Corporation, have already dropped memberships from the stock exchange to ease their compliance burden and save money. |
|
|
