US SEC renames unit due to broader oversight role

WASHINGTON, Nov 13 (Reuters) - The U.S. Securities and Exchange Commission is renaming its market regulation arm the "division of trading and markets" to recognize the unit's broader oversight role, according to an agency document obtained by Reuters on Tuesday.

The division is responsible for developing and interpreting rules related to markets, broker-dealers, clearing agencies and transfer agencies.

However, in recent years the unit has expanded to include a supervisory program in which the agency oversees five investment banks: Goldman Sachs (GS.N) , Merrill Lynch & Co MER.N, Bear Stearns Cos Inc BSC.N, Lehman Brothers Holdings Inc LEH.N and Morgan Stanley (MS.N).

It also gained oversight over credit rating agencies such as Moody's Corp (MCO.N) and McGraw-Hill Cos (MHP.N) Standard & Poor's, which have come under scrutiny for how they rated mortgage-backed securities.

"To recognize this broad range of activities, the SEC has decided... to return to the division's previous name before it was adjusted in 1972," the SEC memo said.

The name change goes into effect on Wednesday. (Reporting by Rachelle Younglai; Editing by Tim Dobbyn)