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After a four year tenure at the US Commodity Futures Trading Commission (CFTC), Republican commissioner Scott O’Malia has tendered his resignation to President Barack Obama on the basis that he does not concur with the entirety of the proposed rules, having criticized the CFTC’s lack of international coordination that has fragmented the global market.
Following the recent appointments of several new commissioners under the steerage of newly, Mr. O’Malia’s letter to President Obama stated: “Although I did not support all 63 rules that the commission has implemented under Dodd-Frank, I am pleased to have contributed to the policy deliberations to improve commission rulemakings.”
Mr. O’Malia was a frequent critic of the CFTC’s rulemaking process under former chairman Gary Gensler, arguing often that the agency was sidestepping procedural responsibilities to assess the costs and benefits of regulations.
Subsequent to the expansion of power to the CFTC to implement new rulings which were set out in the Dodd-Frank Act, Mr. O’Malia’s four year tenure at the CFTC encompassed the entire planning and implementation of the rulings, which included the establishment of Swap Execution Facilities and trade reporting rules for institutional firms which require them to use a central counterparty.
Mr. O’Malia had called for a reassessment of the impact on many firms that use swaps to hedge risks.
“I have very much appreciated Scott’s assistance, advice and friendship,” Chairman Massad said in a statement on behalf of the CFTC. “I appreciate his dedication to the agency, and his leadership in advancing technology at the CFTC.”