Statement From Commission: NYSE Governance Proposal

FOR IMMEDIATE RELEASE
2003-151

Washington, D.C., Nov. 5, 2003 -- The Commission is grateful to interim New York Stock Exchange Chairman John Reed for his leadership in bringing forth this substantial and critical first step toward revamping the governance and regulatory structure at the NYSE.

Mr. Reed has performed a difficult assignment within a very short period, developing proposed structural changes that would shift authority away from a single Chairman and CEO to a truly independent board. This proposal represents a significant rethinking of the structure that has existed at the NYSE, and addresses the issue of independent oversight of the Exchange's regulatory structure.

As required by law, the Exchange will submit the proposal to the Commission for consideration and public comment. While the Commission reserves final judgment on the proposal until after the public comment period, we look forward to considering the public comments received and thoroughly reviewing the submission.

The Commission will continue to consider further market-wide reforms, including governance and regulatory reforms, in the coming months as it proceeds with its broad review of market structure issues. Additional reforms beyond the proposal put forth today will likely be considered.