Reed appoints critic to new advisory board

John Reed, interim chairman of the New York Stock Exchange, has asked one of the NYSE's most vocal critics to join a new advisory board and to continue acting as a thorn in its side as it seeks to regain credibility after a tough year.
Richard Moore, treasurer of North Carolina and a leading voice among state treasurers in pushing for a greater role for investors in the governance of the NYSE, said he had accepted the invitation and would continue to seek the separation of the exchange's regulatory and market operations.
"He told me he wanted me to push and advocate and be critical," Mr Moore said of conversations that he had with Mr Reed, who was appointed to steady a shaken NYSE in September after corporate governance lapses had forced the resignation of Richard Grasso, the exchange's former chairman and chief executive.
Mr Reed has begun implementing a series of governance reforms after replacing most of the 27-member board that served under Mr Grasso.
An eight-strong independent board has been appointed to run the NYSE, and he is now setting up
a "board of executives" to advise on industry and customer issues.
Mr Moore and the treasurers of other states - including New York and California - have expressed sharp disappointment at the reforms. They claimed that they did not give investors enough of a say in NYSE affairs, and the exchange's selfregulatory (SRO) status should be separated from its other functions.
Mr Moore is the first - and probably the only - treasurer to be asked to join the board of executives, although other investor representatives, and those of the securities industry and of listed companies, are likely to be asked.
Mr Moore's comments on regulation indicate that the issue of whether the NYSE should retain its SRO status will need to be addressed early by the exchange's management.
A new chairman and chief executive - which may be two appointees - are expected to be named soon; Mr Reed has indicated that he intended to step down by the end of the year.
The Securities and Exchange Commission also has to approve the NYSE reforms and is considered likely to do so despite its own investigation into corporate governance at all US securities exchange