The Independence of NYSE Regulation

Learn how the separate organizational structure of NYSE Regulation ensures independent decision-making.
NYSE Regulation, Inc., is a not-for-profit subsidiary of NYSE Euronext dedicated to strengthening investor protection and market integrity.  NYSE Euronext is the sole owner of New York Stock Exchange LLC, a New York limited liability company, which inherited the registered securities exchange status of the New York Stock Exchange. That company, in turn, operates through two wholly-owned subsidiaries, NYSE Market, Inc., a Delaware corporation, and NYSE Regulation, Inc., a New York Type A not-for-profit corporation.

This organizational structure preserves and extends the separation yet pervasive communication between business and regulatory activities achieved under the NYSE’s previous governance architecture that was comprehensively reformed in 2003.  It also seeks to insulate NYSE Regulation from the additional crosscurrents created by public ownership.

The chief executive officer of NYSE Regulation has primary responsibility for the regulatory oversight of NYSE Euronext's U.S. exchange subsidiaries and reports solely to the NYSE Regulation board of directors. 

NYSE Regulation’s board of directors is to be comprised of:
  • six directors with no affiliation to the NYSE Euronext board nor any listed company or member organization
  • three directors who are also NYSE Euronext directors, and
  • one management director who serves as the chief executive officer of NYSE Regulation. 

NYSE Euronext’s chief executive officer does not have a seat on the NYSE Regulation board, nor does Regulation report to the NYSE Euronext CEO.  

NYSE Regulation performs regulatory responsibilities for the New York Stock Exchange and NYSE Arca.  It is comprised of a Market Surveillance division that monitors trading activities and investigates trading abuses by member organizations on the Floor and away from the Exchange, an Enforcement division that investigates and prosecutes related disciplinary actions, and a Listed Company Compliance division that ensures that companies listed on NYSE and on NYSE Arca meet their financial and corporate governance listing standards.