Reg NMS Will Be Delayed: Thain

John Thain is a man with a lot on his mind. With his company going public Thursday morning, the NYSE Group CEO is steeped in thought over revenue growing strategies and potential targets for acquisition. But one concern that he isn't losing any sleep over is meeting the June 29 deadline for the SEC's Regulation National Market Structure (Reg NMS). Thain said he's not overly concerned with bringing the Big Board up to snuff to meet the deadline because he's confident the implementation of Reg NMS will be postponed.

"I think the real question is, 'When will Reg NMS really be implemented?'" Thain told reporters after ringing Thursday's opening bell and ceremoniously purchasing the first 100 shares of NYSE Group. "I don't think that it's at all likely ... that [Reg NMS] will be implemented starting in June."

As it is, NYSE has failed to meet the January 31 deadline for applying the Reg NMS sub-penny pricing rule, according to a statement from NASDAQ. NYSE has been hesitant to fully address Reg NMS, as the hybrid market structure awaits SEC approval. But Thain is optimistic that the hybrid market, created by the acquisition of Archipelago Holdings (now operating as NYSE Arca, part of NYSE Group) will get the thumbs-up. "We haven't heard, but we're hopeful that we'll get full approval," he says.

NYSE will operate on its own timetable, regardless of how long the SEC decides to delay Reg NMS. But Thain won't drag his feet. When the hybrid model is approved, it will be tested and put into play with urgency, Thain claims. "We would like to get hybrid implemented as quickly as possible, no matter when the Reg NMS date is, so I actually am hopeful that we'll get hybrid implemented before Reg NMS takes effect."