Investigators of the Securities and Exchange Commission criticized the mechanics and policing of America's stock exchanges Wednesday and recommended dozens of sweeping changes. The scope of the criticism and the proposals was unexpected. The recommendations would do away with personal floor trading, put more restrictions on stock specialists and odd-lot traders, and give the SEC more supervision over the vast over-the-counter market in the United States. William L. Cary, chairman of the SEC, sent the five-volume, 14-pound, 2100-page report to Congress. "We expect to send a letter within the next few clays detailing our views on the specific recommendations," he told Congress. But Cary did say: "This report should not impair public confidence in the securities markets, but should strengthen it as suggestions for raising standards are put into practice." Prices on the New York Stock Exchange slumped badly as soon as the news from the capital reached New York. Some traders on Wall Street said they were shocked at the proposals...

related Stanley Meisler articles by topic: