CFTC Commissioner Sharon Bowen announced that she intends to step down from her position "within the next few months."

In a statement before the Market Risk Advisory Committee, Commissioner Bowen expressed hope that her decision to leave the CFTC would spur the confirmation of four additional commissioners:

"Having just two Commissioners makes routine business difficult, but makes important policy decisions almost impossible. Without a full complement of commissioners to consider the far-reaching implications of our decisions, we are frozen in place while the markets we regulate are moving faster every day. This fact is intolerable to me. I came here to protect investors, by supporting prudent collateralization, promoting robust transparency, and ensuring vigorous enforcement in the derivatives markets; and I intend to continue to do all in my power to reach that goal. My hope is thus that by leaving early, I can inspire the key decision-makers to confirm four nominees as soon as possible."

Commentary / Nihal Patel



While the CFTC is intended to consist of five commissioners with no more than three from the same political party, there are currently only two members (Commissioner Bowen, who is a Democrat, and Acting Chair J. Christopher Giancarlo, who is a Republican).  The President has appointed two additional Republicans (Brian Quintenz and and Dawn Stump) to serve on the Commission, but no Democrats.  Mr. Quintenz had also been nominated by President Obama in March 2016, along with a Democrat, Professor Chris Brummer.  President Trump withdrew both of those nominations before re-nominating Mr. Quintenz, but not Mr. Brummer, last month.

A Cadwalader  Clients & Friends memorandum from July 2016 details how commissioner vacancies impact CFTC function:

"Commissioner vacancies do not limit the remaining Commissioners from exercising any and all of the powers of the CFTC. There is no minimum quorum requirement, and only a bare majority of the quorum must reach consensus for the CFTC to take actions that require the approval of the Commission."

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