Rapid-Fire Appointment Sees O'Malia Take Isda Top Spot

O'Malia tendered his resignation to President Barack Obama on Monday, and will depart the CFTC come August. He will assume his post at the head of the industry body on August 18.

The commissioner, who has served at the CFTC since 2009 and was known for his outspoken opposition to many of the rules governing reform of the over-the-counter market, replaces outgoing Isda CEO Robert Pickel.

O'Malia's departure and subsequent appointment will, however, add to a growing chorus of concern about revolving doors at the CFTC, which found its role as a relatively small body vastly expanded with the financial crisis and its newfound responsibility for instruments such as swaps. Former commissioner Bart Chilton joined law firm DLA Piper as a senior adviser not long after he departed the CFTC, striking a markedly different tone from his previous statements on issues such as high-frequency trading (HFT) in an op-ed run by the New York Times. Meanwhile Jill Sommers, a Republican former commissioner who left last year, was recently confirmed as a new board member for Chicago-based HFT firm Allston Holdings.

Commissioners at the CFTC have traditionally come from political backgrounds, but are increasingly finding work after their terms of service in a financial sector hungry to employ ex-regulators, similar to situations in other markets where heads of agencies are routinely employed in ultra-senior compliance or advisory functions for tier-one banks.

The departure of O'Malia comes as Timothy Massad, who replaced Gary Gensler as chairman of the CFTC, takes the reins, along with new commissioners Sharon Bowen, a democrat, and J Christopher Giancarlo, a republican. Mark Wetjen, another democrat, continues to serve as a commissioner.