Sen. Phil Gramm, chairman of the Senate Committee on Banking, Housing and Urban Affairs, has issued a statement supporting the decision by the board of the New York Stock Exchange to rescind Rule 390, which prohibited off-exchange trading in certain securities.

"The New York Stock Exchange was right to do a 180 on 390," Gramm said. "This move will go a long way toward improving competition and public participation in our markets. The repeal of this rule should remove any doubt that the New York Stock Exchange is fully prepared to become a responsible and responsive public corporation.

"I am particularly pleased that this rule change was made voluntarily by the exchange, without an order from regulators or legislation from Congress," Gramm said. "This shows that markets and market forces will work if we just let them."

Formerly chairman of the Banking Committee's securities subcommittee, Gramm has continued to be active in the oversight of the securities markets and regulators since becoming chairman of the full committee in January. Gramm toured the New York Stock Exchange in June and has participated in committee hearings on a variety of issues affecting the securities markets, including the plans of the New York Stock Exchange and Nasdaq to become publicly traded companies and the role of emerging technology in the creation of electronic communications networks and other non-traditional markets.