Derek Lacarrubba is a partner in the firm’s Asset Management and Investment Funds practice, with a focus on broker-dealer regulatory, compliance, operational and transactional matters. Derek's practice includes advising broker-dealers on a broad array of corporate, regulatory, transactional, and operational matters and proprietary trading firms, hedge funds, registered investment companies and other financial institutions on their interactions with broker-dealers and various aspects of financial market regulation and trading practices.
Derek has extensive experience counseling sell-side institutions on matters arising under the rules of the SEC, FINRA, and all major US registered securities exchanges, including alternative trading system (ATS) regulation, best execution compliance, Regulation SHO, Regulation M, Regulation NMS, the Market Access Rule, net capital (15c3-1) and customer protection (15c3-3) rules, and regulatory reporting obligations (e.g., Consolidated Audit Trail (CAT), Electronic Blue Sheet (EBS), Trade Reporting and Compliance Engine (TRACE), Trade Reporting Facility (TRF), and Large Option Position Reporting (LOPR). In addition to advising broker-dealers on regulatory requirements and assisting with the development of their supervisory procedures and risk management practices, Derek routinely represents broker-dealers in SEC, FINRA and exchange investigations and exams involving complex regulatory or trading issues and on various corporate and transactional matters, such as negotiating agreements and the FINRA new member (NMA) and continuing member (CMA) application processes.
Derek also frequently counsels buy-side institutions on trade practice-related issues, negotiating and managing their relationships with broker-dealers, and compliance with various areas of Exchange Act, FINRA, or exchange SRO rules directly applicable or delegated to buy-side institutions, such as Regulation SHO, Regulation M, Rule 105, SEC Rule 14e-4, and FINRA Rule 5130. In addition, Derek advises financial institutions on broker-dealer status issues, including triggers for registration and various exemptions and exclusions, such as SEC Rule 15a-6 and 3a4-1.
Derek has significant experience assisting with the development of surveillance and anti-money laundering (AML) compliance programs designed to detect and mitigate the risks of securities fraud and market manipulation and has represented broker-dealers, investment advisers, and digital asset securities trading firms in regulatory investigations and enforcement actions involving complex trading patterns and allegations of market manipulation involving cash equity, listed options, futures, fixed income, and other derivative products.
Prior to joining the firm, Derek served as special counsel in the Broker-Dealer Regulatory and Enforcement group of an international law firm focused on private funds. Before attending law school, Derek was an auditor and risk consultant focused on the financial services industry. Derek started his legal career as a Securities Enforcement associate at a globally recognized securities enforcement defense firm and as a member of the in-house counsel team of a bulge bracket investment bank focusing on complex regulatory and enforcement matters.
- Securities Industry and Financial Markets Association
- Alternative Investment Management Association
- Financial Industry Forum, Contributor
Derek regularly speaks at industry events focused on broker-dealer and investment adviser fund regulatory and compliance issues, including as a presenter or panelist at the following:
- “SEC Crypto Task Force Working Group,” Financial Industry Forum, April 2025
- “Share Reporting Forum,” KPMG, April 2025
- “Presentation on 2025 FINRA Annual Regulatory Report.” Financial Industry Forum, March 2025
- “Prepare for SEC Compliance in 2025: Insights, Strategies and Best Practices,” AQMetrics Roundtable Discussion, February 2025
- “Short Sale Reporting Compliance,” MFA Workshop, November 2024
- “Short Sale Reporting Compliance,” MFA Workshop, October 2024
- “Understanding Rule 13f-2 - Your Guide to the SEC’s Updated Short Position Reporting Requirements,” Tabb FORUM and n-Tier fs Webinar, October 2024
- “The SEC Short Sale Rule: Addressing the Ambiguity and Answering Members’ Questions,” AIMA Webinar, July 2024
- “The SEC’s Amendments to the Dealer Definition - Part II,” AIMA Webinar, March 2024
- “The SEC’s Amendments to the Dealer Definition,” AIMA Webinar, February 2024
- “The SEC’s New Short Sale Reporting Rule,” AIMA Webinar, January 2024
- “SEC Short Sale Reporting under New Rule 13f-2 – Q&A,” AIMA Publication, September 2024
- “SEC Final Rule: Amendments to the Definition of ‘Dealer,’” AIMA Publication, February 2024
- “SEC Final Rule: Short Sale Reporting under New Rule 13f-2,” AIMA Publication, February 2024
- “Investment Adviser Conflicts Under the SEC’s New Enforcement Paradigm,” Bloomberg Law, June 2022
- “New FINRA Registration Requirement for Algo Traders,” The Hedge Fund Journal, May 2016
- Quoted, “Whose Data is It, Anyway?” Waters Technology, 1 February 2022
