SEC Considering Plan to Standardize Exchange Governance

The Securities and Exchange Commission's five commissioners agreed to float a plan released today that would require 10 U.S. stock markets to file quarterly reports with regulators, Bloomberg reported.

The exchanges, which include the New York Stock Exchange, would also have to ensure that a majority of their directors are independent. The new rules would make standard a number of governance rules already in place at some of the exchanges.

Nonpublic reports would have to be filed with SEC inspectors, outlining possible trends or issues the exchanges have discovered in the course of trading, Bloomberg reported.

“After a period of intense focus on public-company governance, we would be remiss if we did not seek to apply the lessons learned to the governance of self-regulatory organizations,'' SEC Chairman William Donaldson told Bloomberg. “Recent history has shown that SROs are not immune from governance missteps.”

The SEC's plan would required to separate their regulatory and marketing functions, Bloomberg reported, adding that only independent directors could sit on nominating, governance, audit, compensation and regulatory committees. The proposal also would limit exchange members' ownership stakes to 20 percent.

“Our securities markets have historically operated under a system of self-regulation,'' Donaldson told Bloomberg. “In light of the importance of the self-regulatory system to the nation's economic well-being and to the protection of investors, recent events and longer-term trends point toward the need for the commission to consider whether changes are needed to improve the system.''

You may like these other stories...

Bank Leumi said to face $300 million demand in tax caseDavid Voreacos and Greg Farrell of Bloomberg reported on Wednesday that New York’s banking regulator will ask for more than $300 million to settle an investigation...
Deal to lock in US tax cuts is bubbling up on the HillSome US lawmakers are exploring a post-election deal that would lock in permanent tax cuts for major corporations and low-income families, Richard Rubin of Bloomberg...
Read more from Larry Perry here and in the Today's World of Audits archive.This article discusses basic accounting principles for operating expenses under the FRF for SMEs. Part 2 will address basic auditing procedures....

Already a member? log in here.

Upcoming CPE Webinars

Nov 5Join CPA thought leader and peer reviewer Rob Cameron and learn ways to improve the outcome of your peer reviews while maximizing the value of your engagement workflow.
Nov 18In this session Excel expert David Ringstrom, CPA tackles what to do when bad things happen to good spreadsheets.
Nov 19How do you minimize redundant work and unnecessary steps to maximize the amount of work moving through your firm?
Nov 20Kristen Rampe will share how to uncover new opportunities with your clients by asking powerful questions.