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Spoofing, Surveillance and Supervision

Jay Biondo, Product Manager - Surveillance at Trading Technologies, co-authored an article along with James Lundy and Nicholas Wendland, both of Drinker Biddle & Reath LLP, reviewing the CFTC's regulations and expanding efforts, 21st century surveillance and supervision, as well as strategic recommendations.

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July 27, 2005

NYSE To Separate from Regulatory Arm

By Peter Chapman

(Traders Magazine, July 2005) -- The New York Stock Exchange will split off its regulatory arm once it becomes a for-profit organization.

NYSE Regulation, pending approval of the Big Board's merger with Archipelago Holdings, will become an independent entity with separate funding and its own board, according to a top NYSE executive.

"We will be a strong, fair and independent regulator," John Malitzis, the New York Stock Market's vice president for market surveillance, said at a recent industry conference.

"Our main goal is to ensure we have the tools to regulate our markets," he said.

The announced merger between the non-profit, member-owned NYSE and the shareholder-owned Archipelago is intended to result in the formation of the publicly traded New York Stock Exchange Group.

Once completed, the NYSE would enter into a service agreement with NYSE Regulation similar to the deal between Nasdaq and the NASD, Malitzis told attendees at an SIA market structure conference.

Despite setting up NYSE Regulation as an independent entity, some of its board members will also sit on the NYSE corporate board, Malitzis said. "This is to ensure communication and understanding of what is happening in both areas," he said.