Richard Ketchum Takes Over for Schapiro as Chief Executive of Finra

According to the Wall Street Jounal, Richard Ketchum has been named the new chief executive of the Financial Industry Regulatory Authority, replacing former chief executive Mary Schapiro who is now the chairman of the SEC.

Richard Ketchum, 56, is currently the chief executive of NYSE Regulation Inc., which regulates the conduct at the NYSE. He has served in previous regulatory roles with the SEC, including a stint as head of market regulation. Mr. Ketchum was a senior executive at the old NASD, the predecessor of Finra.

According to the WSJ report:

“At the NYSE, he helped boost enforcement following a scandal in which the floor traders known as specialists were accused by the SEC in 2004 of improperly taking advantage of customer orders to earn profits for themselves. Along with Ms. Schapiro, he also played a lead role in the 2007 regulatory consolidation that combined the brokerage-supervision activities of the NYSE and NASD.

Mr. Ketchum is widely respected for the length and variety of his service. But he was criticized during the 1990s for defending Nasdaq’s stock-trading system from foes who said its bid-ask spreads were set at artificially wide levels.

The SEC later came down against Nasdaq market-makers, charging them with improper collusion and requiring the NASD to spend $100 million over five years to beef up enforcement.”

Richard Ketchum was chosen as the new chief executive of Finra by the 21-member Finra board. An official announcement by Finra is expected soon.

Tags: finra, mary schapiro, nasd, People, richard ketchum, sec