The following dignitaries have agreed to serve as members of the CMAC:
- Myron S. Scholes, Nobel Prize winning economist, Chairman, Oak Hill Platinum Partners, CME Director and Chairman of CMAC:
- Gary S. Becker, Nobel Prize winning economist and Professor, University of Chicago;
- John P. Gould, Professor, University of Chicago Graduate School of Business;
- David D. Hale, international economist and founder, Hale Advisors, LLC; and
- Robert C. Merton, Nobel Prize winning economist and Professor, Harvard Business School
"The CMAC will build upon the CME's world renowned reputation as an innovative financial services company by providing a forum to stimulate independent thought and discussion of the various issues surrounding competitive markets. This new CME forum will provide broad expertise and insight as our markets take on the challenges of the twenty first century," said Mr. Scholes.
"CMAC will serve as an invaluable sounding board for the CME and an integral component of the CME Center of Innovation," said Mr. Melamed, who initiated the CMAC project. "We take pride in inviting these notable scholars to our marketplace. CMAC also will act as the selection committee for the annual recipient of the Fred Arditti Innovation Award of Chicago Mercantile Exchange."
CME Chairman Terry Duffy hailed the formation of CMAC "as yet another important innovation of the CME as we continue to maintain our competitive edge in world markets."
"The creation of CMAC follows a long CME tradition of seeking counsel and ideas from every segment of the marketplace," added Craig Donohue, CME CEO. "This heritage of inclusion has helped us attain the innovator's edge in markets and financial services."
Announced in June 2003, the CME Center for Innovation will sponsor a broad range of original programming to identify and foster significant innovations and creative thinking. The Center's mission is to advance the application of innovation and encourage original thought pertaining to markets, commerce, and financial services in both the private and public sectors. Programs will include seminars, roundtable discussions and original thought pieces on innovation, as well as the Fred Arditti Innovation Award.
Below are brief descriptions of each member of the CMAC.
Chicago Mercantile Exchange Inc. (www.cme.com) is the largest futures exchange in the United States. As an international marketplace, CME brings together buyers and sellers on its trading floors and GLOBEX® electronic trading platform. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE: CME), which is part of the Russell 1000® Index.
Chicago Mercantile Exchange, CME, the globe logo and GLOBEX are registered trademarks of Chicago Mercantile Exchange Inc. Further information about CME and its products is available on the CME Web site at www.cme.com.
The Competitive Markets Advisory Council (CMAC) Center of Innovation Chicago Mercantile Exchange
Myron S. Scholes, Chairman
Myron S. Scholes is currently the Chairman of Oak Hill Platinum Partners, a private equity partnership involved in the private and public investment groups of the Robert M. Bass organization. Scholes received a Ph.D. in 1969 from the University of Chicago, where he served as the Edward Eagle Brown Professor of Finance in the Graduate School. He was the Frank E. Buck Professor at the Stanford University Graduate School of Business from 1983 to 1996, and a Senior Research Fellow at the Hoover Institution from 1987 to 1996. Professor Scholes is widely known for his seminal work in options pricing, capital markets, tax policies and the financial services industry. In 1973, in collaboration with Robert Merton and the late Fischer Black, Scholes published what has come to be known as the Black-Scholes options pricing model, which is the basis of the pricing and risk management technology that is used to value and manage the risk of financial instruments around the world. Mr. Scholes was awarded the Alfred Nobel Memorial Prize in Economic Sciences in 1997.
Leo Melamed, Vice Chairman
Leo Melamed is recognized as the founder of financial futures. As Chairman of the Chicago Mercantile Exchange (CME), Melamed in 1972 launched the International Monetary Market (IMM) - the first futures market for financial instruments. In the following years, Melamed led the CME in the introduction of a diverse number of financial instruments, including foreign exchange, Treasury Bills, Eurodollars, stock index futures, and in 1987, the introduction of GLOBEX®, the world's first electronic futures trading system, becoming its founding chairman. As a primary force in financial risk management, Melamed has been an advisor to the Commodity Futures Trading Commission (CFTC), and in 1982 led the futures industry before the U.S. Congress in creating the National Futures Association (NFA). In 1999, Melamed was named by the former editor of the Chicago Tribune as among the ten most important Chicagoans in business of the 20th Century. Chicago Magazine included him among the century's top 100 Chicagoans. Mr. Melamed presently serves on the CME Board of Directors as Chairman Emeritus and Senior Policy Advisor.
Gary S. Becker
Gary Becker is a professor of economics and sociology at the University of Chicago. He has served as an officer of numerous professional and elected societies, including the American Economic Association (distinguished fellow in 1988 and president in 1987) and the Mont Pelrin Society (president from 1990-92). In addition, Becker is a columnist for Business Week Magazine and a senior fellow at the Hoover Institution. He is the author of numerous monographs and articles, including "A Treatise on the Family," "The Economic Approach to Human Behavior," and "Fertility and the Economy." Becker graduated summa cum laude from Princeton University and holds a masters degree and doctorate from the University of Chicago. Mr. Becker is known for having extended the domain of microeconomic analysis to a wide range of human behavior and interaction, including non-market behavior. Becker's applications of his basic model to different types of human behavior can be accounted for by distinguishing among four research areas: (i) investments in human capital; (ii) behavior of the family (or household), including distribution of work and allocation of time in the family; (iii) crime and punishment; and (iv) discrimination on the markets for labor and goods. Gary S. Becker was awarded the President's National Medal of Science in 2000 and the Alfred Nobel Memorial Prize in Economic Science in 1992.
Craig S. Donohue
Craig S. Donohue has served as Chief Executive Officer and as a Board member of CME Holdings and of CME since January 1, 2004. Previously, Mr. Donohue was Executive Vice President and Chief Administrative Officer, Office of the CEO, of CME Holdings and of CME from October 2002 to December 2003. Before that, he served as Managing Director and Chief Administrative Officer of CME Holdings from its formation on August 2, 2001 and of CME from April 2001, when his title was changed from Managing Director, Business Development and Corporate Legal Affairs of CME, a position he had held since March 2000. He previously served as Senior Vice President and General Counsel of CME from October 1998 to March 2000. Prior to that, Mr. Donohue was Vice President of the Division of Market Regulation from 1997 to 1998 and Vice President and Associate General Counsel from 1995 to 1997. He is a member of the Board of Directors of the National Council on Economic Education.
Terrence A. Duffy
The Honorable Terrence A. Duffy was elected Chairman of the Board of Chicago Mercantile Exchange Holdings Inc. (CME Holdings) and Chairman of the Board of Chicago Mercantile Exchange Inc. (CME) in April 2002. He was Vice Chairman of the Board of CME Holdings from its formation in August 2001 and of the Board of CME from 1998 to April 2002. He has been President of TDA Trading, Inc. since 1981. Mr. Duffy has been a CME member since 1981 and a Board member since 1995. As the company's Vice Chairman, Duffy served on the executive, compensation, nominating, strategic planning and regulatory oversight committees. In 2002, he was appointed by President Bush to serve on a National Saver Summit on Retirement Savings. Duffy also was appointed by President Bush and confirmed by the U.S. Senate in 2003 as a member of the Federal Retirement Thrift Investment Board (FRTIB). The FRTIB administers the Thrift Savings Plan, a tax-deferred defined contribution (retirement savings) plan for federal employees that currently has more than three million participants and $132 billion under management.
John P. Gould
Jack Gould is currently the Steven G. Rothmeier Distinguished Service Professor of Economics at the University of Chicago. Professor Gould is a specialist in the economics of information, microeconomic theory, industrial organization, strategy, law and economics. A member of the faculty of the University of Chicago Graduate School of Business since 1965, Professor Gould was dean of the school from 1983-1993. He holds a B.S. with highest distinction from Northwestern University, and an M.B.A. and Ph.D. from the University of Chicago. Gould was a consultant for Economic Affairs to the Office of Management and Budget under the Executive Office of the President, and Special Assistant for Economic Affairs to then Secretary of Labor George P. Shultz.
David D. Hale
David Hale is the founder of Chicago-based Hale Advisors, LLC. As a renowned global economist, he advises investment management companies and multinational companies in North America, Europe, Asia, Australia and South Africa on global economic trends. Mr. Hale also serves as Chairman of the Board of China Online, LLC, a service provider for business and economic news about China. Mr. Hale is a frequent writer and speaker on current economic issues whose articles have appeared in the Wall Street Journal, Financial Times, New York Times, The Nihon Kezai Shimbun, and Harvard Business Review and Foreign Policy. Before launching his own firm, Mr. Hale was the Global Chief Economist for the Zurich Financial Services Group, where he advised the group's fund management and insurance operations on the economic outlook and a wide range of public policy issues. Mr. Hale holds a B.Sc. Degree in international economic affairs from the Georgetown University School of Foreign Service, and a M.Sc. Degree in economics from the London School of Economics.
Robert C. Merton
Robert C. Merton is currently the John and Natty McArthur University Professor at the Harvard Business School. He is a co-founder and Chief Science Officer of Integrated Finance Limited, a specialized investment bank. After receiving a Ph.D. in Economics from Massachusetts Institute of Technology in 1970, he served on the finance faculty of MIT's Sloan School of Management until 1988 when he moved to Harvard. Professor Merton has served as Senior Advisor to J.P. Morgan, is past President of the American Finance Association and a member of the National Academy of Sciences. In collaboration with Myron S. Scholes and the late Fischer Black, Professor Merton developed a pioneering formula for the valuation of stock options, a methodology that paved the way for economic valuations in many areas, generated new types of financial instruments, and facilitated more efficient risk management in society. Robert C. Merton was awarded the Alfred Nobel Memorial Prize in the Economic Sciences in 1997.
John F. Sandner
John F. Sander has served as Special Policy Advisor and as a director of CME Holdings since its formation on August 2, 2001. Mr. Sandner has been Special Policy Advisor to CME since 1998, a member of CME's Board since 1978, and a member of the exchange for more than 31 years. Previously, he served as Chairman of CME's Board for 13 years. Mr. Sandner has served as President and Chief Executive Officer of RB&H Financial Services, L.P., a futures commission merchant and CME clearing firm, since 1985. He currently serves on the Board of Directors of Click Commerce, Inc. and as a member of that company's audit company. Mr. Sandner also currently serves on the Board of Directors of the National Futures Association.
