[ by Howard Haykin ] FINRA is saying goodbye to one of its long-time warriors, Vice Chairman Stephen Luparello.  Steve joined NASD more than 16 years ago and now leaves the successor organization, FINRA, to join WilmerHale in its Washington, D.C. office.  Steve's last day at FINRA will be 10/7/12. Prior to being named Vice Chairman in 2009, Mr. Luparello served as Interim Chief Executive Officer (CEO) at the time that Mary Schapiro left FINRA to serve as SEC Chairman.

[C-I Note: I recall asking Steve at the time if he was being considered by the FINRA Board of Governors as a permanent replacement to succeed Mary Schapiro as CEO.  I noted that if the Board wished to promote from within, he was, in my estimation, the best qualified individual at FINRA.  And I ticked off some of his attributes: (i) he was the most knowledgeable person in FINRA, about FINRA, and its personnel, and its rules and regulations; (ii) he was familiar with key players inside and outside of FINRA; (iii) he had had years of interacting with FINRA leadership and with the heads of so many member firms - particularly during his days in Market Regulation.

Yes, he was somewhat quiet, and he may not have been so disposed to electioneering for the top spot.  He politely deferred to the Board of Governors, saying they were conducting a search and seemed to have a short list of candidates - including Richard 'Rick' Ketchum.  Rick was in fact selected as the new chief executive - an excellent selection - which meant he would be returning to his old stomping ground.  Best of all, he would serve as Chairman and Chief Executive of FINRA while being supported by a superior FINRA official who was, himself, moving up the ranks to serve in the newly-created position of Vice Chairman.  That person was Stephen Luparello.]

Steve Luparello's Responsibilities. Steve oversees FINRA's regulatory operations, including Enforcement, Market Regulation, Member Regulation and Business Solutions.  He was instrumental in the creation of the Office of the Whistleblower, and the Office of Fraud Detection and Market Intelligence in 2009.  Among his many other accomplishments, Steve led the development and implementation of the Order Audit Trail System (OATS) and SONAR, state-of-the-art market regulation technology systems that have made FINRA the leader in this country in monitoring securities trading and detecting insider trading. FINRA Chairman and CEO Rick Ketchum had this to say about Steve Luparello:  said, "Steve has been at the heart of the work FINRA has done to protect investors for almost 16 years.  He helped lead the organization through one of the most critical times for securities regulators and helped build and shape many of FINRA's regulatory programs.  Steve's leadership in helping FINRA respond to the challenges and changes in the markets has been paramount to FINRA fulfilling its mission of investor protection and market integrity." Luparello's Professional Career. Steve Luparello joined NASD in 1996 as VP in the Office of Disciplinary Policy.  In 1999, he became head of NASD's Market Regulation Department, where he was responsible for oversight of trading on the Nasdaq Stock Market, the American Stock Exchange, the Over-the-Counter equities market and the corporate and municipal fixed income markets. Prior to joining FINRA, Luparello served in various capacities at the CFTC and the SEC. Best of luck in your next endeavors, Steve. To access the announcement, go to:  [FINRA News Release, 9/4/12].