Compliance

11:58 AM
Connect Directly
Google+
LinkedIn
Twitter
Facebook
RSS
E-Mail
50%
50%

FINRA Names Vet Reg Ketchum To Succeed Schapiro

Ketchum, now the chief executive of NYSE Regulation, previously worked for the SEC, including as head of market regulation.

FINRA plans to name veteran regulator Richard Ketchum as its new chief executive, succeeding Mary Schapiro, who just became chairman of the SEC, according to sources quoted by the Wall Street Journal.

Ketchum, now the chief executive of NYSE Regulation Inc., which regulates conduct at the NYSE, previously served in senior regulatory roles at the SEC, including as head of market regulation. He has led NYSE Regulation for the past five years. During the 1990s, Ketchum was a senior executive at the old National Association of Securities Dealers, FINRA's predecessor.

The WSJ reports that at the NYSE, Ketchum helped boost enforcement following a scandal in which the floor traders known as specialists were accused by the SEC in 2004 of improperly taking advantage of customer orders to earn profits for themselves. Along with Schapiro, he also played a lead role in the 2007 regulatory consolidation that combined the brokerage-supervision activities of the NYSE and NASD.

The WSJ notes that Ketchum is widely respected for the length and variety of his service. "But he was criticized during the 1990s for defending Nasdaq's stock-trading system from foes who said its bid-ask spreads were set at artificially wide levels," the Journal said.

The SEC later came down against Nasdaq market-makers, charging them with improper collusion and requiring the NASD to spend $100 million over five years to beef up enforcement.

Ketchum was reportedly chosen by the 21-member board of FINRA, which includes representatives from the public and the financial-services industry, including small brokerage firms that comprise the bulk of the agency's membership. An announcement is expected soon.

Melanie Rodier has worked as a print and broadcast journalist for over 10 years, covering business and finance, general news, and film trade news. Prior to joining Wall Street & Technology in April 2007, Melanie lived in Paris, where she worked for the International Herald ... View Full Bio

Comment  | 
Print  | 
More Insights
Register for Wall Street & Technology Newsletters
White Papers
Current Issue
Wall Street & Technology - Elite 8, October 2014
The in-depth profiles of this year's Elite 8 honorees focus on leadership, talent recruitment, big data, analytics, mobile, and more.
Video
Stressed Out by Compliance, Reputational Damage & Fines?
Stressed Out by Compliance, Reputational Damage & Fines?
Financial services executives are living in a "regulatory pressure cooker." Here's how executives are preparing for the new compliance requirements.