Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

Friday, March 16, 2007

NASD Announces Structure and Organization for New SRO

With the formal consolidation of NASD and New York Stock Exchange Member Regulation on schedule for the second quarter, NASD Chairman and CEO Mary L. Schapiro today announced a number of important structural and organizational moves for the new SRO, focusing on the core areas of member regulation, enforcement, dispute resolution and technology.

Specifically, the changes announced today are:

Member Regulation

The new SRO's Member Regulation function will be split into two departments. Grace Vogel, who currently heads Member Firm Regulation at NYSE Regulation, will head the new SRO's Department of Risk Oversight and Operational Regulation, building on NYSE Regulation's Financial Operations expertise. Robert Errico, who currently heads Member Regulation at NASD, will lead the Department of Sales Practice Regulation, which will leverage the NASD District Office structure and NYSE Regulation's Sales Practice Review Unit in focusing on the wide range of issues involving the financial industry's relationship with the investing public.


The enforcement departments of both organizations will be fully integrated into a single Enforcement Department. Susan Merrill, who is in charge of Enforcement at NYSE Regulation, will be Chief of the combined operation and will be based in New York. NASD's current Enforcement chief, James Shorris, will serve as Executive Director and will be based in Washington.

Member Regulation, Enforcement and NASD's existing Market Regulation Department will report to Luparello.

Emerging Issues

NYSE Regulation's Office of Risk Assessment and the NASD Office of Emerging Issues will be combined into a single group, which will report to Elisse Walter, who currently oversees regulatory policy and programs at NASD. Investment Company Regulation, Investor Education, Corporate Finance, Advertising and Member Education will also report to Walter.

Dispute Resolution

Linda Fienberg, who runs NASD Dispute Resolution, will head the new SRO's Office of Dispute Resolution, which will combine NYSE Regulation's arbitration program with NASD's arbitration and mediation programs.


The integration of the two organizations' technology portfolios will be led by NASD's Chief Technology Officer, Marty Colburn, supported by NYSE's Angela Posillico.

Technology, as well as Strategy, Registration and Disclosure, Testing and Continuing Education, Member Relations, Transparency Services and International will continue to report to NASD's Doug Shulman.

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