Sean Harrigan, CalPERS president, today called on the SEC to reject the reform plan for the New York Stock Exchange proposed by John Reed, interim chairman and CEO, saying it doesn't separate the exchange's regulatory and business operations. Mr. Harrigan met with Mr. Reed earlier today.
"The regulatory framework is doomed to fail for lots of reasons," Mr. Harrigan said. "We believe the regulatory function needs to be set up outside of the New York Stock Exchange structure and regulators should not be accountable to those they regulate."
Mr. Reed's proposal calls for the exchange's regulation arm to remain in-house as a subcommittee of a new board of directors, which would not include members from the exchange or Wall Street.
Mr. Reed could not be reached for comment by press time.
