NYSE/NASD Merger Attracting Lawsuits

Mar 12, 2007 4:36 PM, By John Churchill

             

A California broker/dealer has sued to stop the merger of the NYSE and the NASD, and the firm is looking for like-minded folks to join its cause.

Standard Investment Chartered, a Costa Mesa-based brokerage firm, asked a judge to stop the merger because it would allegedly hurt NASD members. The suit argues that the merger will strip NASD members of their voting rights and won’t fairly compensate firms under the agreement.

Organizations representing small firms like Standard, particularly the Financial Industry Association and the Independent Broker-Dealer Association, have been up in arms about the merger for similar reasons. But the merger did get approval from 65 percent of NASD membership, and many firms like the idea of a consolidated streamlined regulatory system. (Read Registered Rep.’s “The New SRO” to learn what industry bigwigs think of the merger.)

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