As reported in Reuters, a senior regulator at the CFTC is being thrust into the spotlight after the agency fined her former employer for a supervisory breakdown over illegal wash trades that primarily occurred on her watch.  It should be noted that the CFTC’s 9/28/16 civil case against Newedge USA, now fully owned by Societe Generale, makes no mention of that individual, Eileen Flaherty, who heads up the agency's office that oversees rules governing CCO’s at brokerage firms, among other things. 

Yet, before joining the CFTC in July 2015 as director of the Division of Swap Dealer and Intermediary Oversight, Ms. Flaherty was global head of Compliance and Financial Crime Prevention for Newedge from mid-2011 through the end of 2014.  SocGen agreed to pay $750,000 to settle the wash sale charges that allegedly occurred from June 2010 through January 2014.  "

As is par for the course, the CFTC's complaint cited the firm’s inadequate supervisory system and compliance programs, and the complaint did not name any responsible individuals.

The case has raised eyebrows among some commission staffers, who questioned whether Flaherty did her job properly at Newedge, and whether she was fit for her current role, several people told Reuters, asking not to be named because they were not authorized to speak with the media.

That said, CFTC Chair Timothy Massad extended Flaherty's employment contract for another year in August, about a month before the case became public.