NYSE exec says reforms fall short

EFFORTS to reform the scandal-hit New York Stock Exchange have come under fire from one of the market's own recently-appointed board members.

Richard Moore, one of 19 executives named in December to form a new board, said while progress had been made since the departure of former chairman Richard Grasso, self-regulation would not be effective.

'I don't think internal regulation will work,' Moore, North Carolina Treasurer, told a conference. The NYSE's new structure 'is a dramatic improvement over what it has been, but I don't know if this system is going to work as well', he added.

The comments reflect the challenge that remains for NYSE chief executive John Thain and interim chairman John Reed as they battle to restore investors' faith in the 211-year-old institution.

Reed was drafted in to overhaul the NYSE after Grasso was forced out last year when details emerged of his $188m (£99.4m) compensation package.

Among the changes, Reed created a dual board - one of independent members who oversee regulatory issues, and another comprising officials who handle business matters.