The Financial Industry Regulatory Authority’s CEO, Mary Schapiro, has been nominated as the next head of the U.S. Securities and Exchange Commission.

President-elect Barack Obama announced the choice Thursday. In response to her nomination, Schapiro, who must be confirmed by Congress, said she is “honored and humbled to be considered for this position”.

She noted that Americans are looking to policy makers and regulators to restore stability and trust to the financial markets. “As someone who has spent my entire career focused on investor protection, I’m looking forward to leading an agency — the Securities and Exchange Commission — whose mission is so critical to the future economic health of our country,” she said.

“Modernizing America’s financial regulatory system demands that federal agencies work collaboratively, aggressively and creatively to meet head-on the realities of today’s complex marketplace,” Schapiro added. “Investor trust is the lifeblood of our financial markets. The only way to restore the trust that has been lost is through effective, thoughtful reform of our regulatory structure and the consistent and robust enforcement of our financial regulations, and this will be my top priority.”

SEC chairman, Christopher Cox, said, “I commend President-elect Obama on his outstanding choice of Mary Schapiro to chair the Securities and Exchange Commission after my service ends next month.”

“I have worked closely with Mary for many years on a wide range of financial industry and market regulation efforts, including the creation of FINRA and the protection of senior investors, and she has always been a consummate professional. Her experience at both the CFTC and SEC will be invaluable in tackling the challenges of regulatory restructuring that the next Congress will face. She is deeply committed to protecting investors and ensuring the integrity of our markets,” Cox added.

Obama also named Gary Gensler to head the Commodity Futures Trading Commission. The CFTC’s acting chairman, Walt Lukken, said, “President-elect Obama has made an outstanding choice in Gary Gensler to lead the CFTC. Gary has the rare combination of intelligence, market and government experience and independence that will help lead this agency in its vigorous oversight of the futures markets going forward.”

Duncan Niederauer, CEO, NYSE Euronext, said that Obama “chose well” in picking the pair to head the two regulatory agencies. “Mary and Gary are highly respected and dedicated professionals who possess the deep knowledge and experience required to effectively address the challenges facing our regulatory system and financial markets,” he said. “They are people of great integrity who put public interests first, and I am confident that Mary and Gary will do their utmost to ensure a regulatory environment of the highest caliber.”

IE