WASHINGTON Feb 20 The U.S. Securities and
Exchange Commission announced Thursday that attorney and former
regulator Stephen Luparello will run the agency's division that
oversees markets and brokerages.
Luparello's appointment as director of the Trading and
Markets Division was widely expected.
His name has been discussed in gossip circles for months
now, and earlier this month Reuters and other news outlets
reported that SEC Chair Mary Jo White had settled on him for the
job after a lengthy search.
Luparello is currently a partner at the law firm WilmerHale.
Previously, he spent 16 years at the Financial Industry
Regulatory Authority (FINRA), where his responsibilities
included market regulation and enforcement.
He has also worked for the SEC in the past, as well as the
Commodity Futures Trading Commission.
He joins the SEC as the trading and markets division is
still trying to complete work on rules required by the 2010
Dodd-Frank Wall Street reform law on over-the-counter
The division additionally is exploring potential market
That initiative has increasingly grown in importance in the
wake of several high-profile technology failures in recent years
such as the near-collapse of Knight Capital, now a part of KCG
Holdings, in 2012, after the brokerage suffered from a $461
million trading error.
The SEC also said Thursday that its acting director for the
division, John Ramsay, plans to depart the agency next month.
Ramsay has played a critical role in overseeing making
numerous rules within the division, including the Volcker rule
to ban proprietary trading by banks.
He was also deeply involved in the division's response to
high-profile market events, including the U.S. debt downgrade,
the collapse of MF Global, the software glitch at Knight
Capital, and an outage last summer at Nasdaq OMX's
securities information processor.