Grasso to Replace Birnbaum at NYSE

Robert J. Birnbaum will step down as president and chief operating officer of the New York Stock Exchange when his contract expires at the end of May and will be succeeded by Richard A. Grasso.

Birnbaum, 60, who became NYSE president in 1985 after eight years as president of the American Stock Exchange, said in a statement that he is “interested in pursuing other interests and opportunities,” including membership on corporate boards and possibly an association with a major law firm.

His successor, Grasso, 41, is a 20-year veteran of the NYSE who has served as its executive vice president-capital markets since 1986 and is a member of the exchange’s management committee.

There was no indication that Birnbaum’s departure was related to the Oct. 19 stock market collapse, when the NYSE was strained by the plunge in prices and an unprecedented volume of trading.

NYSE Chairman John J. Phelan Jr. praised Birnbaum Thursday.

Grasso is known for his expertise with the exchange’s computers and communications systems, which are becoming increasingly critical. He is responsible for upgrades of the systems that will allow the NYSE to manage volume of 600 million shares a day by June as efficiently as it manages 225 million shares currently.

Phelan said in a statement that “it is imperative that the president and chief operating officer of the NYSE be thoroughly familiar with these systems.”