Wall Street's private regulators say to merge

Wall Street's two main private regulatory arms said on Tuesday they have agreed to merge in a widely anticipated move aimed at reducing industry costs and streamlining oversight functions.
Industry self-regulatory units run by the NASD and NYSE Group Inc which operates the New York Stock Exchange, will combine self-regulatory operations into a single watchdog overseeing all securities firms doing business with the public in the United States.
The new organisation is expected to begin operations in the second quarter of 2007, and will consist of the current 2,400-person NASD organisation and about 470 staff in NYSE Regulation's member regulation, arbitration, and related enforcement units. NASD Chairman and Chief Executive Mary Schapiro will serve as CEO of the combined organisation.
The merger has long been sought by the securities industry, whose members have complained the overlap of two major industry-sponsored regulators was too costly and time consuming.