FOR IMMEDIATE RELEASE 99-8 RICHARD LINDSEY, MARKET REGULATION DIRECTOR, TO LEAVE SEC Washington D.C., January 26, 1999 -- Richard R. Lindsey, Director of the Securities and Exchange Commission's Division of Market Regulation, announced today that he will leave the Commission in March to become a Senior Managing Director with Bear, Stearns & Co., Inc. Mr. Lindsey will assume the newly-created number two position in the correspondent clearing subsidiary, Bear, Stearns Securities Corporation. SEC Chairman Arthur Levitt said, "Rich has been a critical part of our management team and at the center of the most dynamic changes that have occurred in our markets in 25 years. He brought to the SEC a deep understanding and vision for where financial markets are going. Rich's creativity and leadership skills have steered the Division through these demanding times." Levitt added, "Rich has been a friend as well as one of my closest advisers and I will truly miss him." Mr. Lindsey, 44, became Director of the Division of Market Regulation in November, 1995, after having served the previous five months as the Commission's Chief Economist. As the principal regulator of the securities markets, clearance and settlement system and the investment banking community, Mr. Lindsey has been responsible for a significant number of major SEC initiatives, including: * Alternative Trading Systems: a new regulatory framework for non-traditional securities markets, allowing markets to choose between registering as broker-dealers or exchanges. This framework provides for the development of for-profit, fully-automated exchanges. * Order Execution Rules: the most significant change in the operation of US equity markets in the past 25 years, enhancing the quality of quotations and increasing competition. These rules provided for customer limit orders to be displayed in the market and incorporated non-public markets into the national market system. * Over-the-Counter Derivatives Broker-Dealer (Broker- Dealer Lite): a scheme for a new type of broker-dealer intermediary, specifically designed for entities engaged in the over-the-counter derivatives business. This approach allows the use of statistical models for risk-based capital for the first time in the securities industry. * Regulation M: a comprehensive reformulation and simplification of the rules governing stock transactions following public offerings, focusing the regulation of such trading on those securities most likely to be manipulated. In announcing his plans to leave the Commission, Mr. Lindsey said, "I am extremely fortunate to have had a remarkable staff at the Commission. I have never worked with a group of such intellect and dedication. The talents of my colleagues in the rest of the Commission have also been a constant source of inspiration. I am deeply grateful to Chairman Levitt for having given me the opportunity to work with him during this interesting and challenging period and have benefited from his wisdom and experience in many areas. I am very excited about the position at Bear Stearns; however, I will always miss my friends at the Commission and be grateful for my experiences here." Prior to joining the SEC, Mr. Lindsey was a finance professor at Yale University in the School of Management where he conducted research on the design and regulation of markets. While at Yale, Mr. Lindsey consulted on risk management, proprietary trading and the pricing of derivative instruments. He also held the positions of Visiting Academic at the Nikko Research Institute in Tokyo, Japan, and Visiting Economist at the New York Stock Exchange. Prior to entering academia, Mr. Lindsey was a research engineer for Owens Corning Fiberglas and later worked for CertainTeed Corporation, first as manager of process engineering and then plant manager of the company's Dallas manufacturing facility. Mr. Lindsey has a BS in Chemical Engineering from Illinois Institute of Technology, an MS in Chemical Engineering from UC Berkeley, an MBA from the University of Dallas and a PhD in Finance from the University of California, Berkeley. # # #