Richard G. Ketchum's appointment as NYSE chief regulatory officer was applauded by public pension fund officials, although calls remain for a split of the Big Board's market and regulatory functions.
"The exchange was in desperate need of new leadership, in the regulatory function specifically," said Jack Ehnes, CEO of the $107 billion California State Teachers Retirement System, Sacramento.
"I really think that unless and until the regulatory function and the market function are completely separated, there won't be a true solution in place," said Cynthia Richson, corporate governance officer at the $59 billion Ohio Public Employees Retirement System, Columbus. "It's still a cumbersome process that doesn't create clarity."
Sarah Teslik, executive director of the Council of Institutional Investors, said she expects Mr. Ketchum will "do as good as job as can be done under the circumstances." She said the problem remains that "the regulators report to people selected by the people they are to regulate."