Scott O’Malia scoots

Commissioner Scott O’Malia, the CFTC’s most trenchant and articulate insider-critic has resigned effective 8 August 2014. He was serving a five year term expiring in April 2015. In his letter to President Obama, he pointedly re-iterated the need for investment in technology and automation, “It is time for the Commission to fully integrate technology into our mission”. Beyond that, he gave no substantive reason for his surprise departure, concluding “While I find this position to be professionally fulfilling, I believe it is time to pursue other opportunities.”

Time will tell the true reason for his resignation, meanwhile it will act as a shock to both the market and regulators. In his four and a half years at the CFTC, O’Malia was both the boy who commented on the emperor’s lack of clothing and the hand holding the olive branch in regulatory family squabbles- a dual role which will be hard to replace.