Timothy Massad has announced his resignation after serving two and half years as head of the US Commodity Futures Trading Commission (CFTC).
The departure of Massad, a Democrat, will coincide with the end of the Obama administration, opening the doors for a Republican successor.
Chris Giancarlo, a Republican and frequent critic of recent CFTC regulation, is widely tipped to become Donald Trump’s appointment as chairman.
Massad’s resignation follows that of Mary Jo White, the former chairman of the Securities Exchange Commission (SEC), who said she will also step down at the close of the Obama administration.
During his time as CFTC chairman, Massad finalised several key aspects of Dodd-Frank around swaps execution and clearing, and establishing a cross-border framework for derivatives regulation with Europe.
“He [Massad] made strides in the efficient and effective cross-border harmonisation of regulatory initiatives,” said Walt Lukken, CEO of the Futures Industry Association (FIA).
“Our industry appreciates that he has been a strong advocate for client clearing in both CFTC rules and in regards to the Basel Committee’s treatment of initial margin in the leverage ratio capital requirements. We thank him for his service to our industry and the public.”
However Massad has also sparked controversy within the derivatives industry, particularly over regulating automated trading and establishing curbs on commodities trading.