The Intercontinental Exchange (ICE) on Monday said it had appointed Fred Hatfield, a former US futures industry regulatory commissioner, as a member of a new board of directors at its recently-acquired subsidiary, the New York Board of Trade.
The move is one of few examples of regulators joining the boards of exchanges that are overseen by the same industry regulator.
Mr Hatfield in recent weeks left his job as one of five commissioners at the Commodity Futures Trading Commission (CFTC) to join Washington law firm Patton Boggs as a senior public policy adviser.
The last time a CFTC commissioner made a similar move was in the 1990s, when chairman and commissioner Wendy Gramm joined the board of Enron.
The move also reflects an increasing desire by US futures exchanges to have figures on their boards who will help them deal with the industry regulator at a time of unprecedented regulatory challenges, brought about by the advance of borderless electronic trading, exchange consolidation and stepped-up co-operation between the CFTC and other financial market regulators.
Mr Hatfield will be joined on the Nybot board by, among others, Terrence Martell, a professor of finance at Baruch College in New York; Fred Schoenhut, chairman of the previous Nybot board; Richard Spencer, ICE chief financial officer; and Christopher Dunn, a partner at Vinson & Elkins, another Washington law firm.
Thomas Farley, a former president at SunGard, a software firm, joins Nybot as chief operating officer. The moves come as Nybot prepares on Friday to launch electronic trading in frozen orange juice, sugar, coffee and cotton futures for the first time on ICE’s electronic trading platform, “side-by-side” with Nybot’s traditional “open outcry”, face-to face trading.