The acting chairman of the Commodity Futures Trading
Commission Mark Wetjen believes the appointment of his proposed
replacement Tim Massad could take as long as six months,
writes Luke Jeffs.
Wetjen told the world's largest swap brokers last week he
expected the new chairman to take over at the CFTC in "three to
six months", according to two sources in London.
The acting CFTC chairman, who was elected to that post on
December 16 last year, also sought to reassure the European
firms, some of whom criticised the CFTC under former chair Gary
Gensler, that the Commission will consult more with the
industry in future.
The comments came during a European tour that saw Wetjen
meet the European Commission on Thursday and Britain's
Financial Conduct Authority on Friday.
The CFTC did not respond to calls requesting comment.
Barack Obama nominated Tim Massad, formerly of the US
Treasury, as CFTC chair in November but his appointment as head
of the world's top futures regulator still needs approval from
the US Senate.
Wetjen has been acting chairman of the CFTC since Gensler
stepped down at the start of this month and will continue to
run the Commission until Massad takes office.
The CFTC has not yet given any guidance when this will
happen but the regulator will be keen to appoint Massad so he
can get on with the job of implementing the Dodd-Frank rules, a
programme that continues apace in the US.
February 21 is the next major deadline in the far-reaching
reform, when swap dealers and inter-dealer brokers will have to
start using electronic trading systems known as swap execution
The CFTC and its international peers are forcing traders to
use Sefs to make the global $400tn swap market more transparent
and easier to regulate.