Photograph of William McChesney Martin Jr., former NYSE president and longest-serving chair of the Federal Reserve. In 1971, amid growing regulatory scrutiny and public pressure, the NYSE Board of Governors turned to Martin to lead an independent inquiry into the Exchange’ s governance and structure.
Bettmann
In his Intelligent Investor column for The Wall Street Journal, Jason Zweig wrote that Mayday“ may well have been the most momentous day on Wall Street” since the Buttonwood Agreement of 1792.
Courtesy of NYSE Group
On May 17, 1792, 24 brokers signed the Buttonwood Agreement, shown here, setting minimum commissions and paving the way for the NYSE. Wall Street Journal columnist Jason Zweig wrote that Mayday“ may well have been the most momentous day on Wall Street” since then.
Army veteran and then associate director for market regulation and chief counsel in the SEC’ s Office of Policy Research— launched a series of inquiries and public hearings to examine commission structures, market competition and antitrust concerns, spurred in part by the DOJ’ s call for negotiated rates. These early efforts laid the groundwork for a sweeping regulatory shift, rooted in the conviction that competitive pricing would foster a more modern, transparent and investorfriendly marketplace.
The Vote to End Fixed Commissions
In January 1975, the SEC made its move. Commissioner A. A. Sommer Jr. expressed the agency’ s resolve that competitive commissions would usher in a fairer, more participatory market and dismissed fears of collapse. On January 23, the SEC adopted Rule 19b-3, abolishing the NYSE’ s authority to enforce fixed commissions. Effective May 1, broker-dealers would negotiate rates based on market forces. SEC Chairman Ray Garrett Jr. called it a“ landmark moment.”
Mayday: A Quiet Revolution and a Cultural Moment
May 1, 1975, marked a seismic shift in financial history. Discount brokerages like Muriel Siebert & Co. seized the opportunity, offering best execution services at lower costs. It was not just a new pricing model; it was the beginning of a different Wall Street.
Muriel F. Siebert: Wall Street’ s Maverick
Muriel“ Mickie” Siebert did not just face resistance— she faced a wall. In the same decade that women were marching for equal pay and demanding a voice in the workplace, the NYSE remained an allmale bastion. However, Siebert, fueled by conviction and determination, refused to back down. With support from two industry allies, James O’ Brien of Salomon Brothers and Kenneth Ward of Hayden Stone & Co., she applied for membership, secured the required $ 445,000 and, on December 28, 1967, broke a 175-year precedent by becoming the first woman to own a seat on the NYSE. She stood alone among 1,365 men. Shortly after, she
30 FINANCIAL HISTORY | Summer 2025 | www. MoAF. org