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Four of the six charges against former NYSE chairman Richard Grasso have been overturned regarding his $187.5 million compensation package. The final outcome?

Grasso will settle the case
NY State will not pursue the case
Grasso lost his reputation, regardless
Not Spitzer's worst decision but up there

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Regulation Department

Industry News

SEC Gives Exchanges Room to Be Their Own Bosses

The Securities and Exchange Commission, bowing to pressure from exchanges that say they face greater competition than ever, is proposing to give exchanges more leeway to make quick changes in their markets. The SEC said Wednesday it would allow exchanges to institute a broader range of rule changes without getting prior SEC approval.

Rule Changes: Brokers on NYSE Floor Could Get an Edge

NYSE Euronext's slate of new proposed changes for the New York Stock Exchange will affect floor brokers just as surely as they will affect specialists. The exchange operator last Friday submitted to the Securities and Exchange Commission a 271-page rule proposal to overhaul its market model. The SEC is expected to publish the rule filing for comment shortly. For floor brokers, as for specialists, the proposed changes take the form of a renewed focus on parity as a central tenet at the NYSE. Floor brokers will also get new tools and order types designed to enable them to represent orders more effectively in an increasingly electronic market.

SEC to Advise Mutual Fund Boards on Trading Desk Oversight

Buyside traders may soon find themselves under more scrutiny. The Securities and Exchange Commission plans to issue guidelines for mutual fund boards to aid them in their oversight of fund company trading practices.

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Articles from Traders Magazine

Foreign Stocks Go Real-Time

The Financial Industry Regulatory Authority, under pressure from the over-the-counter trading community, has asked the Securities and Exchange Commission for permission to report OTC trades in foreign securities in real time. FINRA's proposed changes to NASD Rule 6620 follow a three-year campaign by Pink OTC Markets and the Security Traders Association to require it to disseminate the last-sale reports as soon as the trades are reported by dealers. Now, the regulator only reports a summary of trading activity at the end of the day.

SEC Plans To Review Reg NMS

The Securities and Exchange Commission, in the wake of industry criticism, says it will review Regulation NMS. Bob Colby, deputy director, the SEC's Division of Trading and Markets, told conference-goers at the Securities Industry & Financial Markets Association annual market structure conference last month that "we do plan to review [Reg NMS] and consider whether, given the changes in the market, it needs to stay for all time."

SEC Watching Options Take Fees

The Securities and Exchange Commission, in the wake of concerns raised by options exchanges and traders, won't permit options exchanges to charge access fees over a certain limit. "We're certainly not fond of take fees that cross the increment," said Erik Sirri, director of the SEC's Division of Trading and Markets, referring to the minimum allowable quoting increment for options. If the fee crosses the increment, Sirri added, "that would be an issue."

FINRA Advises on Rogue Trading

Take that vacation! That recommendation is at the top of the list in a memorandum issued by the Financial Industry Regulatory Authority addressing ways to detect and prevent rogue trading. Traders, FINRA says, should be required to take 10 consecutive trading days of vacation time so any unauthorized trades they might have made can be detected.

FINRA Targets Manning for Change

The Financial Industry Regulatory Authority recently outlined a plan to make its all-important Manning Rule look more like its counterpart at the New York Stock Exchange, Rule 92. The move is part of a broader attempt to reduce the regulatory burden on broker-

Proposal Threatens Canadian Stocks

The Securities and Exchange Commission, in an attempt to lighten the burden on foreign issuers of unregistered securities, may in fact be driving foreign companies away from U.S. securities markets. Dually listed Canadian companies are most at risk. That's the complaint from traders of over-the-counter securities, as well as the operator of the primary marketplace for unregistered foreign stocks, Pink OTC Markets. They applaud the SEC's efforts to relax certain requirements of Exchange Act Rule 12g3-2. But they oppose the regulator's proposal to add a new requirement to the rule that could force foreign companies to register with the SEC.