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Tag Archives: Chicago Board of Trade

Potential CME-NEX Deal Is Full of History, Dilemma, Risk and Reward Blog,Commentary,Exchanges, OTC & Clearing,Fintech,Investing & Trading,Mwiki

For many years, the Chicago Board of Trade had cash treasuries envy, wanting to add the trading of cash treasury bonds and notes to its offerings. For many years, the CME has had cash currency trading envy. Both exchanges, now part of the CME Group, have tried to compete in cash Treasury and FX through various collaborations and initiatives. None of them succeeded. Chicago Board Brokerage and FXMarketSpace are long gone, but the desire to add treasuries and cash FX trading has never disappeared. Now, if CME Group’s confirmed interest in NEX Group becomes a deal, it can add both…

Tax Law Change Means All Cash Grain Traders Are Not Equal, Better Bids or No Blog,Commentary,Mwiki,Politics,Regulation & Enforcement

Grain market players who are not part of farmer-owned cooperatives are alarmed over the potential impact on grain market origination of the recent changes to the U.S. tax code. In what appears to be an unintended consequence of bad tax bill writing, cooperatives have been favored over other market players in the form of a tax benefit to farmers for selling their grain to cooperatives rather than to private grain companies. This change in the way physical grain moves through the system could make it more expensive for consumers, as cooperatives exercise what appears to be newly granted monopoly powers…

FANG+ Puts the UMPH Back into the Markets and Exchange Competition Blog,Commentary,Exchanges, OTC & Clearing,Financials,Interview,Investing & Trading,Mwiki

Hallelujah! The magical power of innovation from exchange competition in Chicago is alive and well after a noticeable absence. The NYSE FANG+ index at ICE Futures US is the most innovative and timely new contract I have seen since the Cboe introduced the VIX. Besides the FANG+ contract, we have the expectation of the CME Group and Cboe slugging it out later this year with competing bitcoin futures offerings. Earlier this year we had the CME Group resteal the Russell index complex from ICE, returning the contracts to the CME where they were  in 2007. The FANG+ sprang from this exchange…

Business and Friendship Went Together For Leo Melamed, Bob Wilmouth and Leslie Rosenthal Blog,Commentary,Exchanges, OTC & Clearing,Mwiki

Leo Melamed lost two good friends in the last few days in Bob Wilmouth and Les Rosenthal. I stopped by Melamed’s office to share my condolences and have him share some thoughts on these two futures industry leaders. He told me the futures industry as a whole lost two people who were critical to the success of the industry in the U.S. and who worked with him to help create what the late Merton Miller called the “modern era of finance.” He told me how these two CBOT leaders became his good friends. It was the threat of a transaction…

Robert K. Wilmouth Passes Away; Remembered as Respected Industry Leader and Colleague Blog,Commentary,Mwiki,ReformWiki,Regulation,Regulation & Enforcement

Robert K. Wilmouth, the founding National Futures Association president and CEO, passed away yesterday, the NFA said. Wilmouth served as head of the newly formed NFA from 1982 to 2003. He was succeeded by Dan Roth, who recently retired from the role and was replaced by Tom Sexton. Wilmouth also served as the president of the Chicago Board of Trade for about five years. He was brought to the exchange by then exchange chairman William D. Hagerty, Jr. Wilmouth’s futures industry career was preceded by some 27 years in banking, beginning in 1950 at the first National Bank of Chicago….

Christian Domin, GlenStar Properties – Value Investing: Office Space and Associated Risks MarketsWiki Education,Video

“When you’re first starting out, you want to keep your lease as short-term as possible and mitigate the risk. If there is a regulatory change, a change in your small, three-person partnership, or any other change, you’re going to be stuck.” Most financial professionals know that the day-to-day price risks are but a small component of one’s overall business risk. Even trading firms that make their money on price movement must deal with regulatory uncertainty, technological change and other shifting trends. Christian Domin, whose firm GlenStar Properties purchased the iconic Chicago Board of Trade Building in 2012, says real estate…

Mike Forrester reflects on 50 years of trading at the CBOT Interview,Tech / HFT,Video,video

Toledo, Ohio-born Mike Forrester has been a member of the Chicago Board of Trade for more than 50 years. He started out at the CBOT as a runner for the old Uhlman Grain Company in 1963 at age 22.  He got interested in the markets and started trading job lots on his own. After rising quickly at Uhlmann, he was sent to Grand Rapids, Michigan for training in securities trading, where he earned a Series 7 registration. But Chicago’s markets was where his heart was. He returned there after a year in Michigan and once again worked as a runner…

Mary McDonnell, Simon Compliance – How to Manage (and even Succeed) in the Current Regulatory Marketplace Regulation,Video

“It’s a lot harder to do something than to tell somebody else how to do something.” Mary McDonnell got her start in the financial markets as a regulatory auditor for the Chicago Board of Trade, and though she has spent most of her career on the compliance and regulatory side, she did spend some time as a floor trader. She says this experience taught her to empathize with the traders she would be overseeing over the ensuing years. With that backdrop, she looks at the current regulatory environment and what it means in terms of opportunities, but also in terms…

Katie Burgoon, Trading Technologies – Gone But Not Forgotten: How The Floor Trader Mentality Can Prepare Everyone For Success Video

“You would never have met a floor trader who did not live and breathe the markets every day. They literally could not wait for the alarm clock to go off every morning.” Though the open outcry system of order execution has been relegated to the history books, the trading floor mentality lives on in the hearts and minds of the thousands of former floor participants. And any one of them would say that the things that defined a floor trader – passion, a strong voice and even a confident swagger – can prepare anyone for a successful career. Katie Burgoon,…