James “Jamie” Selway, US head of execution services at agency broker ITG, is the front-runner to lead the division of trading and markets at the US Securities and Exchange Commission, according to people with knowledge of the matter.
The SEC, ITG and Mr Selway declined to comment.
The SEC’s ranks will be filled after Jay Clayton, the veteran corporate lawyer US President Donald Trump has picked to lead the US regulator, is confirmed by the Senate.
Stephen Luparello, who previously headed up trading and markets at the SEC, has been hired by Citadel Securities, the market making arm of Citadel which runs a separate hedge fund.
Mr Selway is a well-known figure in the US equity market.
Prior to joining ITG in 2010, Mr Selway co-founded White Cap Trading and was chief economist at Archipelago, an electronic stock-market operator sold to the New York Stock Exchange. He also worked in equity derivatives research at Goldman Sachs.
ITG ran afoul of the SEC in 2015, paying a $20m fine to settle charges it operated a secret proprietary trading desk from 2010-2011 that traded against ITG clients and misused their confidential information. The chief executive at the time, Bob Gasser, resigned after the allegations. In January, ITG agreed to pay $24.4m to settle SEC charges that it violated federal securities laws by improperly handling American Depository Receipts.
Mr Selway is said to have been involved in the clean-up of the problems at ITG.
Reuters first reported the news.