In announcing the recipient, Myron S. Scholes, Nobel Prize-winning economist and Chairman of CME's Competitive Markets Advisory Council (CMAC) said, "Fred Arditti would be pleased to know that his esteemed colleague and friend of many years is receiving the award named in his honor. At a time of significant turmoil in world financial markets, the abandonment of the Bretton Woods system of pegged exchange rates, Leo had the foresight to see an opportunity for market innovation. The currency futures that Leo conceived in 1972 revolutionized financial markets around the world; it is nearly impossible to underestimate their impact on financial markets and risk management."
In accepting the award, Leo Melamed said, "It is with a deep sense of respect and gratitude that I accept the CME Fred Arditti Innovation Award. To be chosen by CMAC for this award, to be included in the company of its first recipient, William F. Sharpe, and to thereby embrace the memory of Fred Arditti, a superb innovator and my very close friend, is an honor of unimaginable proportion."
Melamed is recognized as the founder of financial futures. In 1972 he launched currency futures at CME and created the International Monetary Market (IMM)-the first futures market for financial instruments. Twenty years after their inception, the 1992 Nobel Laureate in economics, Merton Miller, named financial futures as "the most significant innovation in the past two decades." In the years that followed, Melamed led the CME in the introduction of a diverse number of financial instruments, including Treasury Bills, Eurodollars, and in 1982, stock index futures. In 1987, Melamed spearheaded the introduction of CME Globex(R), the world's first electronic futures trading system, and became its founding chairman.
Outside of CME, Melamed has also played a leadership role in other areas of the U.S. futures industry. Over the past 30 years, he has been an advisor to the U.S. Commodity Futures Trading Commission (CFTC) and serves as special advisor on futures markets to governments worldwide. In 1982, Melamed led the futures industry effort before the U.S. Congress in creating the National Futures Association (NFA), a self-regulatory body of the futures industry where he served as chairman from its inception until 1989 and continues to serve as its permanent Special Advisor. He continues to serve CME as a member of its board and as Chairman of its Board Steering Committee.
CFI's mission is to identify, foster and showcase examples of significant innovation and creative thinking pertaining to markets, commerce and financial services in the public and private sectors. Oversight of the CFI is provided by its Advisory Council, CMAC, which includes three Nobel Prize winners, Myron Scholes, Gary Becker and Robert Merton. CMAC selected Melamed and will present him with the award at a recognition dinner to be held on April 20, 2006, at the Four Seasons Hotel in Chicago. Nobel Prize winning economist William F. Sharpe was the inaugural award recipient of the CME Fred Arditti Innovation Award in 2004.
CME's award is named after the exchange's former Chief Economist Fred Arditti, who was instrumental in developing CME's Eurodollar futures contract, the world's most actively traded futures contract. The CME Fred Arditti Innovation Award honors an individual or group whose innovative ideas, products or services have created significant change to markets, commerce or trade. The award strives to celebrate innovation that through practical application has had a positive impact on the economic well-being of individuals, industry or a nation.
Chicago Mercantile Exchange Inc. (http://www.cme.com) is the world's largest and most diverse financial exchange. As an international marketplace, CME brings together buyers and sellers on CME Globex electronic trading platform and on its trading floors. CME offers futures and options on futures primarily in four product areas: interest rates, stock indexes, foreign exchange and commodities. The exchange moved about $1.4 billion per day in settlement payments in 2005 and managed $45.8 billion in collateral deposits at December 30, 2005, including $3.2 billion in deposits for non-CME products. CME is a wholly owned subsidiary of Chicago Mercantile Exchange Holdings Inc. (NYSE, Nasdaq: CME), which is part of the Russell 1000(R) Index.
Statements in this news release that are not historical facts are forward- looking statements. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied in any forward-looking statements. More detailed information about factors that may affect our performance may be found in our filings with the Securities and Exchange Commission, including our most recent Quarterly Report on Form 10-Q, which can be obtained at its Web site at http://www.sec.gov. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.
Chicago Mercantile Exchange, CME, the globe logo and CME Globex are registered trademarks of Chicago Mercantile Exchange Inc. E-mini is a trademark of CME. CLEARING 21 is a registered trademark of CME and New York Mercantile Exchange, Inc. S&P, S&P 500, NASDAQ-100, Nikkei 225, Russell 1000, Russell 2000, TRAKRS, Total Return Asset Contracts and other trade names, service marks, trademarks and registered trademarks that are not proprietary to Chicago Mercantile Exchange Inc. are the property of their respective owners, and are used herein under license. Further information about CME and its products is available on the CME Web site at http://www.cme.com.
