Friday, January 27, 2006

Should the Securities Industry Have Just One Set of Rules? - New York Times

The SIA will be releasing a proposal and guidelines to completely revamp the self regulatory system for the securities markets. The proposal would eliminate the NASD and NYSE as regulators, and create one regulatory organization.

The purpose is to eliminate duplication of effort and regulation. However, no one has identified a problem with duplication of effort. The NYSE and NASD do a good job of avoiding that potential duplication of regulation of firms that are members of the NYSE, with the NYSE taking the lead on those investigations and audits.

Do we really need to overhaul the entire system? Maybe so, and some have been calling for an overhaul (or even elimination) of self-regulation. But a consolidation to avold the overlap between the two regulators?
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