Two top public pension fund investors who called for the NYSE to separate regulatory and market functions are reserving judgment on interim Chairman John Reed's recommendation that the exchange keep both functions.
"One of our ideas was to split those functions, and I still favor that," said Kentucky state Treasurer Jonathan Miller. He and other state treasurers are willing to hear Mr. Reed's ideas for keeping the exchange's two key functions together. "Until we find out what that way is, it's hard to judge," he said.
John Chartier, spokesman for Alan Hevesi, New York state comptroller, concurred. "The big picture is that we'd like to see better corporate governance at the New York Stock Exchange, period," Mr. Chartier said. "What shape that takes, let's see."
Messrs. Miller and Hevesi, along with other state treasurers and public fund executives, met with several NYSE board members on Sept. 24 to discuss reforming the exchange in the aftermath of Richard Grasso's resignation as chairman and CEO.