In a widely-expected move, Richard G. Ketchum has been named as the new chief executive of the Financial Industry Regulatory Authority (FINRA). He replaces Mary Schapiro, who recently took the helm at the Securities and Exchange Commission.

Ketchum has been overseeing regulation at the New York Stock Exchange (NYSE) for the past five years and has also served as chairman of FINRA’s board of governors since its inception in 2007. His experience with the organization and previous working relationship with Schapiro has raised hopes of a new era of cooperation between FINRA and the SEC as both regulators navigate the current financial crisis.

Ketchum takes over at FINRA on March 16. The 56-year-old regulatory veteran has been called as one the major architects of FINRA, which consolidated the National Association of Securities Dealers (NASD) with portions of the NYSE regulatory arm. He also spent 14 years at the SEC, where he was director of the division of market regulation. In addition, he spent a very brief time at Citigroup as general counsel of the corporate and investment bank between 2003 and 2004.

“Given his experience and excellent working relationship with Mary Schapiro, I would expect that together they will introduce significant initiatives and reforms at both FINRA and the SEC,” says Brian Rubin, a partner at Sutherland law firm and former deputy chief counsel of the NASD.

One state regulator who has known Ketchum for more than a decade is Joe Borg, Securities Commissioner for Alabama. “I found him to be very accessible and willing to listen,” says Borg, who worked closely with Ketchum during his time at the NYSE. “The folks he oversaw had great respect for him and enjoyed working with him.” Borg adds that he hopes Ketchum will allow FINRA to work more closely with state regulators on joint investigations and enforcement actions, saying: “In this environment, the more eyes looking at the problems, the better.” Currently, FINRA’s internal rules prevent the group from working with the state regulators on these issues, Borg says.

Ira Hammerman, general counsel of the Securities Industry and Financial Market Association (SIFMA), an industry lobby group, said in a statement: “Now more than ever our regulatory agencies require the leadership of individuals who have impeccable enforcement credentials and who also understand the markets and the industry, making Rick perfectly suited for the job.”