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CFTC chairman Massad to step down
03 January 2017
His departure is set to coincide Donald Trump’s inauguration as US President
Timothy Massad plans to step down as chairman of the
Commodity Futures Trading Commission (CFTC) after
two-and-a-half years at the helm of the US derivatives
Massad has tendered his resignation, the agency confirmed on
Tuesday. His departure, which was expected, is set to
coincide with the end of the Obama administration and Donald
Trump’s inauguration as President.
He took charge of the CTFC after it was handed expanded
powers to oversee complex parts of the derivatives market as
part of the Dodd-Frank financial reform law.
Among the accomplishments under his leadership, the
regulator proposed and adopted margin requirements for
uncleared swap transactions - perhaps the single most important
element in multi-trillion dollar swaps market regulation
called for by Dodd-Frank.
The CFTC also worked to ensure clearinghouses became
stronger and more resilient through enhanced risk surveillance,
stress testing, and the development of recovery plans and
"I came to the CFTC with a number of priorities, and I am
proud we have made significant progress in every area," Massed
said in a statement.
"We have taken many actions to make sure commercial
businesses can continue using the derivatives markets
efficiently and effectively to hedge routine commercial risk
and engage in price discovery," he added.
Massad will remain at the regulator for a few more weeks in
order to allow for a proper transition to the new
Christopher Giancarlo, the CFTC’s only
Republican member, is expected to succeed Massad, at least on
an interim basis.
FIA president and chief exec Walt Lukken thanked Massad for
his service to the industry.
"Chairman Massad has provided steady leadership at the CFTC,
characterized by his thoughtful approach to policymaking. He
made it a priority to speak with industry members to gain
insights and gather feedback on key issues. In particular, he
made strides in the efficient and effective cross-border
harmonization of regulatory initiatives."
Massad's resignation plans mirror the exit of Securities and
Exchange Commission (SEC) chairman Mary Jo White, who announced
she would leave the top US markets regulator shortly after
Donald Trump won the US presidential race in November.