(The news featured below is a selection from the news covered in the Federal Securities Report Letter, which is distributed to subscribers of the Federal Securities Law Reports.)

SEC Approves SRO Corporate Governance Rules

The SEC approved new rules proposed and adopted by the New York Stock Exchange and the Nasdaq Stock Market requiring widespread strengthening of corporate governance standards for listed companies. According to the SEC, the new rules establish a stricter, more detailed definition of independence for directors and require the majority of members on listed companies' boards to satisfy that standard. In addition, the rule changes include a number of provisions that require and facilitate independent director oversight of processes relating to corporate governance, auditing, director nominations and compensation.

SEC Chairman William Donaldson said that "these rule changes are at the core of a broad movement by our markets to enhance the corporate governance practices of the companies traded on them and I congratulate the NYSE and the NASD for their efforts." He added that "investors will recognize significant benefits from these actions today and long into the future."

¨ The approving release will be published in a forthcoming REPORT .