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The exchanges also announced the appointment of eight initial members to serve on the joint venture's Board of Directors.
"Bill Rainer's experience encompasses the worlds of investment, trading and market regulation, and his track record of vision and innovation are ideal for the new CME-CBOE-CBOT joint venture on single-stock futures," said Scott Gordon, Chairman of CME. "Bill's knowledge and experience will enable him to hit the ground running in meeting customers' needs for single-stock futures."
"The CBOE-CME-CBOT joint venture is an historic development for Chicago, and it was important to find the right person, capable of meeting the many challenges that lie ahead," said CBOE Chairman and Chief Executive Officer William Brodsky. "Bill Rainer's depth of experience in a multitude of areas, and the leadership he will provide, will be a major asset for the joint venture."
"This is an exciting opportunity. Given the unique composition of our ownership, and the depth and quality of resources available to our company, we are positioned to provide a strong marketplace for single-stock futures. I am eager to move to Chicago and to get started," Rainer said. Rainer served as Chairman of the CFTC from August 1999 until early this year. Under his leadership, the CFTC embarked on unprecedented regulatory reform, including support of the Commodity Futures Modernization Act of 2000, which allows the introduction of single-stock futures later this year. Prior to his CFTC appointment, Rainer was Chairman of the United States Enrichment Corporation from 1994 until 1998.
Rainer's securities industry experience includes having co-founded Greenwich Capital Markets in 1981, where he served as Managing Director of the firm until 1987.
Earlier, he held positions at Kidder, Peabody & Co., Inc., including manager of corporate bond trading and director of fixed income marketing. Rainer earned bachelor of arts and master of business administration degrees from Southern Methodist University.
Additionally, the CBOE-CME-CBOT joint venture announced the appointment of eight initial members to serve on its Board of Directors:
- William Rainer, Chairman of the Board and Chief Executive Officer
- William Brodsky, Chairman and Chief Executive Officer, CBOE
- Scott Gordon, Chairman of the Board, CME
- Mark Duffy, Vice Chairman, CBOE
- James McNulty, President and Chief Executive Officer, CME
- Leo Melamed, Chairman Emeritus and Senior Policy Advisor, CME
- Ed Joyce, President and Chief Operating Officer, CBOE
- David Vitale, President and Chief Executive Officer, CBOT
Single-stock futures are expected to bring new efficiencies to securities trading, securities lending and corporate hedging activities. They will be traded electronically on the joint venture exchange, and orders may be entered through both the new CBOEdirectTM electronic platform and CME's GLOBEXâ 2 electronic trading system. CBOT traders will have full access to trade the products, adding to the market's liquidity.
The Chicago Board Options Exchange created and launched the first listed options on stocks in 1973 and the first index options in 1982. Today, CBOE lists options onmore than 1,500 stocks and on over 40 indexes, such as the S&P 500, the Dow Jones Industrial AverageSM, the Russell 2000, the Nasdaq-100, and the S&P 100. It remains the world's largest and most successful options marketplace.
Chicago Mercantile Exchange Inc. launched the first successful stock index futures contracts on the S&P 500 in 1982. Today, CME trades futures and futures options on indexes including the S&P 500, Nasdaq-100, S&P MidCap 400, Russell 2000, FORTUNE e-50Ô , S&P/BARRA Growth and Value Indexes, and Nikkei 225, as well as its electronically traded E-mini S&P 500 and E-mini Nasdaq-100 contracts - the fastest growing products in the exchange's history. CME also trades interest rate, foreign exchange and commodity products. On November 13, 2000, CME demutualized and became a for-profit, shareholder-owned corporation.
The CBOT has an established and active market in equities through its Dow Jones Industrial AverageSM futures and options products, which trade via open outcry and on the exchange's electronic trading platform. The CBOT's equities sector will be expanded with the launch of its mini-sized DJIASM futures on September 30, 2001, and its DowSMJones-AIG Commodity Index in the fourth quarter of 2001, both on the exchange's electronic platform. In addition, the CBOT provides a diverse mix of more than 60 futures and futures-options contract markets for major agricultural and a broad range of interest rate products via its open outcry and electronic trading platforms.
