A group of small brokers hope to block NYSE-NASD linkup

A group of small brokerages wishes to block a fusion between the private regulators, to say is a way of backstairs so that bigger companies strip smaller companies of their energy in forming regulations. At the beginning of this week, NYSE Group Inc. said their unit of rule would double their operations of the company of brokerage in NASD, the dog greater private guardian of the brokerage of the nation. The movement is meant to reduce the cost of conformation with the regulating laws for the companies that are supervised by the NYSE and NASD, that tend to be greater brokerages. But Richard Goble and members of his group, the association of the financial industry, see this supply like part of a ampler problem: bigger companies are supporting the regulations that can excessively be heavy for smaller runners, to make them harder so that they survive. �The big companies are trying to grow taking the share from market of the smallest individuals,� Goble this.
They give right to vote by or against this fusion, but those members can be unconscious the members of NASD, that regulates all the runners of the securities in the United States, of something of the fine impression in the combination, said Goble, Co-founder of the association of the financial industry. For example, smaller companies will be able to only vote by three of the 23 positions of the board of the combined organization, whereas now, the members can vote by 15 of the 17 points of the NASD board, Goble this. Under present rules, the big and small companies each one also have a vote, so smaller companies can choose theoretically as much whereas 100 percents of the points available of the NASD board. Howard Schloss, spokesman for NASD in Washington, C.C., said that the composition of the board was the result of negotiations with the NYSE. �The substantial and diverse representation looked for NASD of the industry,� and thinks that it reached it, Schloss this.
Goble and the members of their group, the association of the financial industry, disagree and see this supply like part of a ampler problem: bigger companies are supporting the regulations that can excessively be heavy for smaller runners. NASD less has about 5,100 members, of those who near 4,600 are relatively small, with 150 runners or. The big companies, that they have more than 500 runners, explain 75 percents of the runners and 80 percents of the yield in the industry, Schloss of NASD this. A majority of voting of the members must approve the fusion so that it goes through. Goble says, typically, to near 2,000 members votes and it is hopeful his group, the association of the financial industry, can at least form 1,050 votes against the fusion. Goble sent a letter that requests that the members vote against the rule. NASD also plans to pay $35,000 to all their companies registered on the closing of the distribution to recognize the savings of cost of the combination. But it does not have sense so that smaller companies give for above as much, said to Jed Bandes, president of the mutual confidence Co. Of the securities of America, that signs is a member of the association of the financial industry. �It is right nonworthy of her,� added Bandes.