CalPERS Makes Statement On Deal Reached By SEC And NYSE Specialist Firms

Sean Harrigan, President of the California Public Employees’ Retirement System (CalPERS) made the following statement yesterday about the tentative agreement NYSE specialist firms made with federal regulators over accusations of trading abuses:

“The specialist scandal validates that self regulation at the NYSE hasn’t worked and simply won’t work in the future. It took the SEC, not the NYSE, to step in and end the practice that the NYSE should have ended long ago on its own. The lesson learned here is that self regulation doesn’t work.”