By Rachelle Younglai

WASHINGTON (Reuters) - The White House said on Friday it intends to nominate two Democrats to fill empty seats at the Securities and Exchange Commission, which has been operating with three Republican commissioners for several weeks amid worsening market turmoil.

Elisse Walter, former deputy director of the SEC's corporation finance division, and Luis Aguilar, a former SEC lawyer, will be nominated for the positions, the White House said in a statement.

Walter is currently an executive vice president with the Financial Industry Regulatory Authority. Aguilar is a partner at the law firm McKenna Long & Aldridge.

The five-member SEC, a key U.S. investor protection agency and market watchdog, has been operating for several weeks with just three Republicans. Democrats Annette Nazareth left at the end of January and Roel Campos last fall.

Senate Majority Leader Harry Reid, a Nevada Democrat, in November recommended Walter and Aguilar to the White House for its consideration.

"Senator Reid is pleased that the White House intends to nominate these two individuals. He looks forward to the Senate confirming them as quickly as possible," Reid spokesman Jim Manley said in a telephone interview.

The chairman of the Senate Banking Committee, Christopher Dodd, said the commissioners will play an important role in the SEC's decision-making process and work in protecting investors and promoting the integrity of the financial markets.

"I look forward to considering these nominations at the earliest opportunity," said Dodd, a Democrat from Connecticut.