NYSE Regulation, a not-for-profit subsidiary of NYSE Euronext, will oversee Finra's performance of regulatory services for its markets, according to a news release.
Finra Chairman Richard Ketchum said in a statement that the deal allows the group "to have a more holistic, cross-market approach to regulation" amid "fragmented markets, aggressive competition and complex trading strategies."
Ketchum had warned that multiple regulators jockeying to keep tabs on U.S. trading are working with an incomplete picture of the overall market, with differing sets of rules creating loopholes and the potential for some participants to avoid oversight.
"This is the right thing for the markets and the right thing for customers," NYSE Euronext CFO Michael S. Geltzeiler said. "Moving these types of activities to Finra, coupled with the business they have from Nasdaq and BATS, marks one step toward the optimal structure where we have a single market surveiller."
Geltzeiler said that eventually he would prefer all U.S. share-trading volume to go through the same regulatory surveillance required of exchanges like NYSE Euronext, and that consolidating these functions could make the overall process cheaper and more efficient for everyone.