SEC Trading and Markets Director, Other SEC Leaders Ready to Depart

SEC Director of the Division of Trading and Markets Stephen Luparello will leave his position by January 1, 2015. News of his departure follows the recent announcement that SEC Chair Mary Jo White will step down by the end of the Obama Administration.

Under Mr. Luparello’s leadership, the SEC:

  • “adopted Regulation Systems Compliance and Integrity (Reg. SCI), which established new controls to strengthen crucial technological systems, providing greater transparency, accountability and resilience”;
  • “enhanced [the] operational transparency and regulatory oversight of alternate trading systems . . . that trade stocks listed on a national securities exchange, including dark pools”; and
  • “approved a plan to create a comprehensive database [(i.e., the consolidated audit trail)] that allows regulators to track trading activity in the U.S. equity and options markets.”

The SEC noted that Mr. Luparello was “instrumental” in the creation of the first Equity Market Structure Advisory Committee. He was the principal liaison for SEC staff in discussions concerning the U.S. Treasury market in the wake of the events of October 15, 2014. Under Mr. Luparello’s direction, the SEC approved a rule that requires FINRA members to report U.S. Treasury securities transactions and gives regulators enhanced oversight of the U.S. Treasury market. Chief Counsel for the Division of Trading and Markets Heather Seidel will become the acting director.

Enforcement Division Chief Litigation Counsel Matthew C. Solomon will leave the agency early next month. Enforcement Division Deputy Chief Litigation Counsel David Gottesman and Enforcement Division Supervisory Trial Counsel Bridget Fitzpatrick will serve as acting Co-Chief Litigation Counsels.

Chief Accountant James Schnurr intends to retire from the agency. Mr. Schnurr began his tenure as Chief Accountant in October 2014. Wesley R. Bricker will succeed him as Chief Accountant.

Lofchie Comment: Mr. Luparello has broad experience in financial market regulation and is highly respected. His departure will be a loss to the SEC.

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