Derek N. Lacarrubba advises broker-dealers, hedge funds and other financial institutions on matters arising under the rules of the SEC, CFTC and various self-regulatory organizations, including the Financial Industry Regulatory Authority (FINRA), the National Futures Association (NFA) and various securities and futures exchanges. He advises clients on a wide range of regulatory issues affecting financial services firms, with a focus on equity and futures trading practices, alternative trading system regulation, best execution practices and compliance with Regulation SHO, Regulation M, Regulation NMS and the Market Access Rule. Derek also advises broker-dealers and hedge funds on anti-money laundering and sanctions regulations, with a focus on AML programs designed to detect and mitigate the risks of securities fraud and market manipulation. Derek’s practice covers a wide array of products, including cash equities, OTC and listed options, swaps, futures and fixed income instruments.

In addition to advisory work, Derek represents buy-side and sell-side firms in regulatory investigations and enforcement actions. Prior to entering private practice, Derek was an auditor, risk consultant and member of the in-house counsel team at a bulge bracket investment bank. Derek earned his J.D. from the University of Virginia School of Law and his B.S. in accounting from the University of Delaware.

Publications

“Investment Adviser Conflicts Under the SEC’s New Enforcement Paradigm,” Bloomberg Law, June 2022

SEC Proposal to Redefine the Definition of 'Dealer' Would Cover Certain Private Funds and Private Fund Advisers,” SRZ Alert, May 16, 2022

“SEC Seeks to Shorten the Standard Settlement Cycle to T+1,” SRZ Alert, Feb. 10, 2022

“Whose Data is It, Anyway?,” WatersTechnology, Feb. 1, 2022 (quoted)

“SPAC Litigation Alert: CEO of Acquisition Target Charged in First Criminal Indictment Connected to a De-SPAC Transaction,” SRZ Alert, Aug. 9, 2021

“SPAC Litigation Alert: SPAC Sponsor and CEO Agree to Pay Civil Penalties and Forfeit Sponsor Shares Following SEC’s Charge of Disclosure and Due Diligence Failures,” SRZ Alert, July 20, 2021

“Federal Banking Regulators Update Guidance on Model Risk Management Practices for AML and Sanctions Compliance,” SRZ Alert, June 10, 2021

Securities Enforcement Quarterly, SRZ Publication, April 2021

“SPAC Litigation Alert: SEC Cautions SPAC Participants that Claims of Reduced Liability Exposure Are Overstated,” SRZ Alert, April 13, 2021

“Broker-Dealers and Mutual Funds: Increased Regulatory Focus on Suspicious Activity Monitoring and Reporting Requirements,” SRZ Alert, April 1, 2021

“SEC Staff Bulletin Highlights AML Risks Associated with Low-Priced Securities Trading in Omnibus Accounts,” SRZ Alert, Dec. 14, 2020

“SEC Proposes Enhanced Regulatory Oversight for Government Securities Alternative Trading Systems,” SRZ Alert, October 23, 2020

“Broker-Dealers: B-D Guidance on Business Continuity Planning During the COVID-19 Pandemic — Considerations for an Evolving Emergency,” SRZ Alert, March 20, 2020

“Broker-Dealers: B-D Guidance on Increased Cybersecurity Risks Due to the COVID-19 Pandemic,” SRZ Alert, March 20, 2020

“Broker-Dealers: B-Ds Receive Consolidated Audit Trail (“CAT”) Relief Due to COVID-19 Pandemic,” SRZ Alert, March 18, 2020

“Broker-Dealers — Coronavirus Update for Broker-Dealers — BC/DR Implications and FINRA Regulatory Relief,” SRZ Alert, March 16, 2020

“SEC Adopts Rules to Enhance Order Handling Information Available to Investors,” SRZ Alert, Dec. 14, 2018 (co-author)

“The New FINRA Registration Requirement for Algorithmic Traders: Implications for Broker-Dealers and Investment Advisers,” SRZ Alert, April 26, 2016 (co-author); republished in The Hedge Fund Journal, April/May 2016   

Speaking Engagements

“Broker Dealer Issues,” SRZ 30th Annual Private Investment Funds Seminar, January 2021

Common Brokerage and Trading Issues,” SRZ 29th Annual Private Investment Funds Seminar, New York, January 2020