The U.S. National Futures Association (NFA) has begun a process of selecting a new Chief Executive Officer (CEO). The self-regulatory organization overseeing the derivatives industry has been headed by Daniel Roth since 2003, but his tenure at the NFA has been developing since 1983.
Mr. Roth joined NFA as an attorney and worked his way up to the positions in the NFA’s general council, later becoming an executive vice president. Before being appointed as CEO he also held the role of Chief Operating Officer (COO).
During his tenure at the NFA, Roth led the initiative on taking major regulatory decisions which have led to a substantial decline in complaints against the U.S. futures industry. That said, under his tenure the capital requirements for foreign exchange dealers have increased dramatically, effectively stifling growth in the U.S. retail FX market.
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Many argue that the moves by the NFA in its oversight of retail foreign exchange dealers have failed to protect the best interests of clients. The tough regulatory stance of the NFA has effectively reduced competition amongst RFEDs and left the market with five players – FXCM, GAIN Capital, Interactive Brokers, OANDA and TD Ameritrade.
NFA Appoints Search Committee to Find Successor
The NFA will look for a successor in the coming months with the self-regulatory organization delegating the task to a search committee comprised of board members and financial markets professionals.
Commenting on the announcement, Mr Roth said: “NFA is well-positioned to fulfill its expanding regulatory responsibilities in the coming years. I’ve been honored to spend more than 30 years working with a talented and diverse group of professionals who are dedicated to safeguarding market integrity.”
The U.S. self-regulatory organization has been working in tandem with the government’s Commodity Futures Trading Commission. CFTC’s Commissioner Sharon Bowen said: “Dan has been working with NFA to protect the markets during a variety of major events, including the 2008 financial crisis.”