The consolidation of the NASD and the New York Stock Exchange into the Financial Industry Regulatory Authority received final regulatory approval from the Securities and Exchange Commission last week, according to Reuters.
“The consolidation of NASD and the NYSE’s member firm regulatory functions is an important step toward making our self-regulatory system not only more efficient, but more efficient in protecting investors,” said Christopher Cox, chairman of the SEC.
Cox stated that the SEC will work closely with FINRA to eliminate unnecessarily duplicative regulation, including consolidating the two different member rulebooks and enforcement systems.
The merged watchdog will be responsible for regulating the Nasdaq, the American Stock Exchange, and the International Securities Exchange. The group also regulates all securities firms that do business with the public.
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