The Boston Options Exchange (BOX) is expanding its operations to include a Washington, D.C. office to work closely with the SEC as it moves towards filing for Self Regulatory Organization (SRO) status as a national securities exchange which will provide enhanced control and flexibility.
“It is a natural progression to have a more significant presence in Washington, D.C.,” said Will Easley, vice chairman of BOX. “We are thrilled to have long-time BOX advisor, Wayne Pestone, as our chief legal officer as he brings critical expertise and understanding to BOX as we seek SRO status.”
Pestone, former Of Counsel at Bingham McCutchen LLP (Bingham), joins BOX as the chief legal officer. At Bingham, he provided counsel to exchanges regarding market regulation, surveillance, and compliance for both equity and options trading. In addition, he represented BOX since its inception, most notably during its SEC approval process in 2003. Pestone brings his extensive experience on the key issues facing the options industry today including best execution, order handling, competing market models and exchange surveillance.
Prior to joining Bingham, Pestone served at the SEC from 1992-1999 where he was special counsel with the SEC’s Office of Compliance Inspections and Examinations’ (OCIE) SRO Inspection Group. His duties included conducting regulatory oversight inspections of U.S. equity and options exchanges as well as broker-dealers regarding trading on the securities exchanges and ECNs. In 2000, he was awarded the Capital Markets Award as a member of the Options Market Reform Team.
As chief legal officer, Pestone’s primary responsibilities are supervision of BOX’s day-to-day legal and compliance obligations, and as a liaison with BOX’s primary regulator, the Boston Stock Exchange (BSE). He is also working with the SEC as BOX seeks approval to become a SRO which is targeted for the fourth quarter of 2009. Pestone is joined in D.C. by Christine Young, regulatory liaison manager for BOX, with responsibilities for communicating with all regulators as well as helping to manage the SRO approval process.
“In today’s volatile market conditions, it is even more important to be agile and flexible,” continued Easley. “Securing an independent SRO designation will allow BOX to adapt even more quickly to market changes and capitalize on expanded opportunities for growth.”
