Securities and Exchange Commission Historical Society

The Bright Image: The SEC, 1961-1973

Special Study of Securities Markets

"Operation S.E.C."

Long before the completion of the Special Study, the New York Stock Exchange, concerned about its implications for NYSE members and for the stock market in general, organized a concerted effort to react and respond to demands made by the Special Study staff. Both the SEC and the NYSE realized that the recommendations of the Special Study could have dramatic effects on the way the exchanges did business.

NYSE President G. Keith Funston created "Operation S.E.C.," a confidential NYSE staff group which communicated to the NYSE Board about each SEC request or meeting, and discussed how to respond to likely SEC requests and recommendations. The NYSE supported self-regulation of market problems and its own members' practices. The NYSE was convinced that the SEC did not fully appreciate the economic complexities involved in regulating market practices.

The correspondence and meetings between Cohen and his staff and Funston and his staff document an intricate and complicated effort to measure each other's intentions and goals, while remaining professional and cordial. In that respect, the SEC's approach under the Special Study differed from the attitude of the SEC under Chairman Douglas, which had engaged in open warfare with the NYSE and its officers. By 1962, the SEC had established a reputation for effectiveness among administrative agencies, choosing cooperation rather than confrontation as the best approach.

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Related Museum Resources

Papers

December 6, 1961
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December 14, 1961
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
December 27, 1961
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December 27, 1961
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 10, 1962
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 31, 1962
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
July 11, 1962
image pdf (Courtesy of New York Stock Exchange Archives)
July 24, 1962
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August 8, 1962
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September 5, 1962
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
November 16, 1962
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
April 25, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 6, 1963
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May 6, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 14, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 15, 1963
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May 16, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 27, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
May 31, 1963
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
July 30, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
September 4, 1963
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
September 17, 1963
image pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
October 8, 1963
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
October 8, 1963
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)
October 18, 1963
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November 1963
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November 6, 1963
image pdf (Courtesy of New York Stock Exchange Archives)
November 12, 1963
transcript pdf (All rights are owned exclusively by NYSE Euronext copyright 2007 NYSE Euronext, All Rights Reserved, Courtesy New York Stock Exchange Archives)

Photos

June 24, 1965

New York Stock Exchange

(All rights are owned exclusively by NYSE Euronext (copyright) 2007 NYSE Euronext, All Rights Reserved, courtesy New York Stock Exchange Archives; use restricted to the virtual museum and archive at www.sechistorical.org )

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