Closing the Door on Trading Floors?

A constantly growing variety of electronic exchanges are putting increasing heat on the granddaddy of human pits, the NYSE

When former Citigroup (C ) Co-Chairman John Reed assumes the helm of the New York Stock Exchange on Sept. 30, he'll have plenty of fires to put out. Investors are screaming for reforms in the way the NYSE manages its business. Powerful public pension funds that collectively oversee hundreds of billions of dollars -- and thus have huge clout -- have lodged protests over a system that paid just-departed Big Board chief Richard Grasso $140 million in current and deferred compensation, apparently without the full knowledge of the NYSE's bulky 27-member board. Reed has already announced that he'll push for a smaller, more independent board that will run a tighter ship.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.