The Securities and Exchange Commission (SEC) has announced that Stephen Luparello, Director of the Division of Trading and Markets, will leave the agency by the first of the year. He was named director of the office in February 2014.
Mr. Luparello has played a key role in enhancing the transparency and strengthening the integrity of our nation’s markets, including the operation of trading platforms, clearing agencies, and broker-dealers that investors rely on every day.
SEC Chair Mary Jo White said:
We set an ambitious agenda to enhance our market structure. Steve was at the forefront of that effort, and his leadership and expertise have helped produce both important new protections for investors today and a strong foundation from which the Commission can continue to further strengthen our markets for years to come. The agency is extremely fortunate to have the benefit of Steve’s deep knowledge and commitment to the markets.
Mr. Luparello added:
It has been an honor to work with Chair White, the Commissioners and the incredible Trading and Markets team, whose dedication and hard work have greatly enhanced the Commission’s oversight of the equity, fixed income and derivatives markets. I know they will continue to make great progress in these important areas on behalf of investors and our markets.
During Mr. Luparello’s tenure, the Commission adopted Regulation Systems Compliance and Integrity (Reg SCI), which established new controls to strengthen crucial technological systems, providing greater transparency, accountability and resilience. He also played a key role in the Commission’s efforts to enhance operational transparency and regulatory oversight of alternate trading systems (ATSs) that trade stocks listed on a national securities exchange, including dark pools. Additionally, he oversaw proposed rules that for the first time would require broker-dealers to disclose the handling of institutional orders to customers.
With Mr. Luparello’s leadership, the Commission also approved a plan to create a comprehensive database that allows regulators to track trading activity in the U.S. equity and options markets. The database, known as the consolidated audit trail (CAT), will greatly enhance regulators’ ability to monitor market behavior and reconstruct market events.