The Securities Industry and Financial Markets Association’s Small Firms Committee is recommending approval of the NASD/NYSE Regulation consolidation.

The committee sent a letter to more than 280 SIFMA small firm members today recommending the move. The letter was endorsed by an overwhelming majority of the committee’s members and also commended the leadership of Mary Schapiro, chairman and CEO of NASD, for strongly representing the interests of small firms throughout consolidation negotiations.

The bylaw changes and the consolidation that will follow would result in meaningful and long-sought after benefits to small firms, including: cost savings as a result of less duplication and redundancy, more efficient regulation and oversight, and improved investor protection, it noted.

Also, the new board structure achieves a balance between public and industry segments and provides for greater representation on the Board of Governors for small firms. Firms of all sizes will continue to avail themselves of the same “one firm, one vote” they currently have for voting on by-law amendments, District Committees and other membership votes.

Other consolidation benefits highlighted in the statement include: improved regulatory effectiveness, elimination of costly redundancy, more industry representation on the board, increased small firm representation on the board.

The committee also commends Schapiro and her team for embarking on a roadshow tour to clarify for firms the effects the consolidation will have on firms. The tour will make stops at 26 locations throughout the country in the month of December.