Dr. Gorham was recruited by CFTC Chairman James E. Newsome to become the first director of the Commission's Division of Market Oversight (DMO). The Division was created as part of a 2002 restructuring of the Commission to facilitate implementation of the Commodity Futures Modernization Act of 2000 (CFMA). The Division handles the designation of new markets, the review of new futures and option products, the monitoring for and detection of market manipulation, and the protection of customers from market abuses.
During his tenure as Director of DMO, Dr. Gorham oversaw the designation of two new fully regulated exchanges, U.S. Futures Exchange (EUREX US) and HedgeStreet, the processing of eight new exempt markets, and the review of over 450 new futures and option contracts. Dr. Gorham worked closely with the Federal Energy Regulatory Commission and others on the many complex issues arising out of the recent exceptional volatility in the energy markets, and with the U.S. Department of Agriculture on the market issues arising out of the finding of BSE in both Canadian and U.S. cattle.
Dr. Gorham, in announcing his departure, commented, "I was extremely fortunate to have been asked to serve at the Commission during a period of dramatic industry innovation, intense competition, and profound structural change. I have loved this job and I will be sad to leave, but it's time for me to return home to Chicago and to a very exciting and challenging opportunity at the Illinois Institute of Technology."
In accepting Dr. Gorham's resignation, Chairman Newsome said, "While it is with much regret that I accept Mike's resignation, I fully understand his decision to return home to Chicago to a very exciting opportunity. I personally recruited Mike to become the first director of the Division of Market Oversight because of his impressive credentials in the industry, which he gained both as an executive at a futures exchange and as an academic. I don't think I am exaggerating when I say that he has exceeded every expectation that I had. The Commission's loss is the Illinois Institute of Technology's gain. On behalf of my fellow Commissioners, I wish Mike every success in his future endeavor."
