Thain sticks up for NYSE floor specialists

John Thain, New York Stock Exchange CEO, today defended the use of floor specialists, saying they provide better prices for customers, increase liquidity in stocks when needed and lower stocks' volatility. Testifying before the House Committee on Financial Services, Mr. Thain also said the exchange has "made substantial investments in technology which, coupled with changes in practice, will go a long way to preventing future abuses" among specialists. Five specialist firms are under investigation by the SEC and NYSE for trading ahead of customer orders. Two of them, LaBranche & Co. and Van der Moolen Specialists USA, have agreed to settlements that include payments of $63.5 million for LaBranche and between $51.8 million and $57.7 million for Van der Moolen.