Derivatives regulator to step down

Mark Wetjen, a commissioner of the Commodity Futures Trading Commission, is resigning from the financial regulator at the end of the month.

Wetjen, one of the commission’s three Democrats, announced Friday that he would be stepping down from the derivatives watchdog, effective Aug. 28. Wetjen said he informed President Obama of his decision but did not say where he would be heading next.

He served at the CFTC since 2011 and played a central role in guiding the regulator as it implemented a host of new rules mandated by the Dodd-Frank financial reform law.

{mosads}“When Mark arrived, the commission was just beginning the task of implementing the Congressional mandate to regulate the swaps market,” said CFTC Chairman Timothy Massad Friday. “Thanks to Mark’s help, the Commission has a framework in place to make the swaps market more open, transparent and competitive. Mark has consistently provided a thoughtful, informed perspective on the issues facing the agency, and his dedication has been invaluable.”

The opening created by Wetjen’s exit means the five-member CFTC will now be equally balanced between the regulator’s two Democrats and two Republicans. Wetjen frequently served as a swing vote at the agency, occasionally siding with GOP commissioners in pushing for less restrictive rulemakings.

And filling Wetjen’s spot could be a tall order, as financial nominees have made little headway in the Senate of late. Two nominees to join the Federal Reserve Board remain pending before that chamber, and the president has yet to fill a third Fed spot, a position devoted to guiding the Fed’s efforts to regulate financial markets.

Before joining the CFTC, Wetjen was a top aide to then-Senate Majority Leader Harry Reid (D-Nev.).

Wetjen also served as acting chairman of the CFTC between the resignation of Gary Gensler and the confirmation of Massad.