Futures Hall of Fame 2009
The Futures Industry Association is pleased to announce that it inducted 21 new members into the Futures Hall of Fame at the 2009 awards ceremony in Boca Raton, FL. Since its inception four years ago, the Futures Hall of Fame has honored the accomplishments and contributions of 74 remarkable individuals from around the world. These inductees have earned the respect and gratitude of participants in the global futures and options markets for laying the foundation for the extraordinary success of our industry. Please join with us in celebrating the legacy that the men and women who share this honor leave behind. Congratulations to the 2009 Futures Hall of Fame honorees.
- Sheila Bair
- Lucian Thomas Baldwin III
- Fischer S. Black
- Bruce L. Cleland
- M. Elaine Crocker
- Richard J. Dennis
- Robert G. Easton
- Jörg Fischer
- Milton Friedman
- Ralph Goldenberg
- William H. Gross
- David Hardy
- Leslie V. Hosking
- Paul-Andre Jacot
- Philip McBride Johnson
- Juliette Proudlove
- Edmund R. Schroeder
- Gary Seevers
- Stephen F. Selig
- Ng Kok Song
- Vincent J. Viola
From Barings to Bear Stearns, Sheila Bair has been at the forefront of crisis management. In her current position as the head of the Federal Deposit Insurance Corp., she is playing a key role in containing the financial crisis and restoring the flow of credit to the housing sector. What few outside the futures industry realize is that she played an equally important role in the debate on derivatives regulation during the first half of the 1990s. As a commissioner of the Commodity Futures Trading Commission from 1991 to 1995, the Kansas native served at the agency during a time when lawmakers were considering major changes to futures trading laws after the collapse of Barings Bank. She also was one of the main architects of the CFTC’s efforts to clarify over-the-counter derivatives oversight and a strong proponent for better inter-agency coordination, which helped pave the way for the revitalization of the President’s Working Group on Financial Markets during the Clinton administration.
Lucian Thomas Baldwin III
Tom Baldwin is a legendary figure in the history of the Chicago Board of Trade. Formerly a product manager for a meat-packing firm, he amassed $20,000 and leased a seat on the exchange in 1982. He began by trading one-lots, but very quickly established himself as a highly competitive and successful member of the trading floor community. With the U.S. experiencing high inflation in the early 1980s, Baldwin rode the rise in the popularity of the relatively new Treasury Bond contract. Although he shunned publicity, he was respected in the industry for his tremendous “feel” for which way the market was likely to move. At his peak, he was the single largest individual trader in the Treasury bond pit, which itself was the largest futures market in the world. His success as a local in the Treasury bond pit exemplifies the success of the futures industry in providing the liquidity necessary for large institutions and others to take the other side of their trades. Baldwin is currently president of Baldwin Commodities Corporation, a Treasury Bond futures proprietary trading company, and manages a hedge fund.
Fischer S. Black
Fischer Black was one of the greatest innovators of modern financial and derivatives pricing. In the early 1970s, together with economist Myron Scholes and with the help of Robert Merton, Black jointly developed the widely used Black-Scholes pricing model. In 1997, two years after Black’s death, Merton and Scholes took the stage in Stockholm to accept the Nobel Prize in Economics for this model that has permeated financial markets and actively captures the appropriate risks when pricing complex instruments. Black was also a pioneer in his theory that human capital and business have unpredictable ups and downs and that discretionary monetary policy could not impact business cycles as much as popularly thought. Black has also received recognition as the co-author of the Black-Derman-Toy interest-rate derivatives model, which was developed for in-house use by Goldman Sachs in the 1980s and ultimately was widely adopted across the industry.
Bruce L. Cleland
Bruce Cleland is the vice chairman and former president and chief executive officer of Campbell & Company. Cleland has worked in the derivatives and investment management business since 1973 and joined Campbell & Company in 1993. He helped transform Campbell & Company from the single trader orientation prevalent among CTAs at the time to an organization in which large pension funds and institutional investors could get comfortable making sizable investments. Cleland invested in education and training for clients thus raising awareness and respect for the entire managed funds industry. He has served as a director on the boards of several futures industry organizations including Commodity Exchange, Inc., the Managed Funds Association, and the National Futures Association, where he currently serves as a member of the board and the executive committee. Cleland is a noted philanthropist who is actively involved in many national and local charities.
M. Elaine Crocker
Few in the hedge fund industry have been more successful in identifying and nurturing talented traders than Elaine Crocker. First at Commodities Corporation and then at Moore Capital, she helped launch the careers of such legendary traders as Paul Tudor Jones, Bruce Kovner, Louis Bacon, Salem Abraham and Monroe Trout. She joined Commodities Corporation in 1970 and eventually rose to executive vice president. Her responsibilities included the planning, selection and development of the firm’s trading and research activities as well as portfolio selection for internal capital and managed fund products. During her time at the firm, she funded well over 100 participants in a program designed to find and evaluate commodity trading advisors. She then joined Louis Bacon at Moore Capital in 1995 and helped him build it into one of the world’s largest and most successful hedge funds. She is currently the president of Moore Capital and a member of its board of directors and its investment advisory committee.
Richard J. Dennis
Once dubbed “Prince of the Pit”, Richard Dennis began his career as a runner at the Chicago Mercantile Exchange at the age of 17 and a few years later was trading for his own account from the floor of the Chicago Board of Trade Building. Dennis is president of the Chicago-based Dennis Trading Group and vice-president of C&D Commodities.
Much of his early success involved following “the Great Russian Grain Robbery,” when the U.S. government secretly agreed to sell grain to the Soviet Union, driving up prices over an extended period. Over the years, Dennis, a trend follower, has lived by his strong belief that successful trading can be broken down into a set of rules and is an activity that can be learned rather than being an innate skill. To prove this theory, in the early 1980s he recruited and trained a group of traders in two groups called the “turtles,” inspired by a visit to a turtle farm in Singapore. The program with the turtles has since ended, but many of these traders have moved on to successful careers in the industry.
Robert G. Easton
Bob Easton, the former chairman and chief executive officer of Commodities Corporation, is one of the most visionary leaders of the managed futures industry. Easton joined the company in 1979 as senior vice president and served as chief executive officer from 1986 to October 2001. He also held numerous leadership positions on futures exchanges, self-regulatory organization boards, governmental advisory boards and industry associations, including a long stint as chairman of the Managed Futures Association and as a director of the Futures Industry Association. Easton recognized early on the value of expanding the managed funds' toolbox beyond futures to include a wide range of other instruments traded both on and off the exchanges. He also recognized the importance of working with Washington policy-makers to permit the growth of alternative investing, and he deserves a great deal of credit for the subsequent growth of the managed futures and alternative investment industry in general.
Jörg Fischer had the vision for the creation of the Swiss Options and Financial Futures Exchange (Soffex), was instrumental in getting DTB Deutsche Terminbörse established, and masterminded the concept as well as the detailed blueprint for the first cross-border derivatives exchange, Eurex, launched in 1998, resulting from the merger of Soffex and DTB. He has played a crucial role in the creation of electronic derivatives markets in Europe.
Fischer began his distinguished career in banking and exchange business in 1975 at Credit Suisse, were he held various national and international management positions, including global head of securities trading. In 1989 he joined Bank J. Vontobel & Co AG as member of the executive board, was appointed CEO in 1995, and became chairman of the board of directors. He served as member, vice chairman and chairman of the board of directors of Soffex from 1986 to 1997, was chairman of the board of directors of Eurex from 1997 to 2002, when he became honorary chairman of Eurex. For many years he held the positions of chairman of the board of directors of Zurich Stock Exchange and the board of directors of SWX Swiss Exchange.
Fischer, who served as chairman, member of the board of directors, and member of the advisory board of other industry organizations, including Nasdaq, is chairman of Fistrat Consulting in Zug, Switzerland.
World-renowned economist and champion of free markets, the late Milton Friedman is also acknowledged as the father of financial futures. After the 1971 collapse of the post World War II pact among global leaders known as the “Bretton Woods Agreement” that set fixed exchange rates in currencies, the University of Chicago economist asserted that flexible exchange rates were indeed workable. It is this strong conviction that helped set the groundwork for currency futures and broader access to these markets. Friedman authored a study in December 1971, “The Need for Futures Markets in Currencies,” which ultimately helped change the destiny of futures markets around the world. After that study, the Chicago Mercantile Exchange introduced the first futures-based financial instruments, ushering in the era of financial derivatives. The growth of these markets is at a magnitude that gives them nearly as big a role as central banks have in determining currency supply and demand and this growth demonstrates Friedman’s logic that values of products are best determined by the forces of supply and demand.
Ralph Goldenberg is a founding partner of Goldenberg Hehmeyer & Co. and chief executive officer of Goldenberg Heymeyer Trading Corp. In 1999 he moved to the United Kingdom to spearhead GHC’s expansion toward a global presence. He continues to manage GH Traders, the proprietary trading firm that was formed after Penson Worldwide’s acquisition of GHCO. Goldenberg has been an active member of the Chicago Board of Trade since 1961, serving as vice chairman, second vice chairman, director, and as a member of the executive committee. In 1988 and 1989 Goldenberg was chairman at the Board of Trade Clearing Corp. Since 1973, Goldenberg has been an active member of the Chicago Board Options Exchange, and he was responsible for the startup of Goldman Sachs’ operation there.
William H. Gross
Bill Gross is one of the premier money managers of our time. As a founder and now co-chief investment officer of the Pacific Investment Management Company, he oversees one of the largest and best-performing fixed income investment portfolios in the world. Under his leadership, Pimco became a pioneer in the expert use of financial futures as well as many other financial derivatives, and at times the firm has been among the largest and savviest players in the Treasury and Eurodollar futures markets. But Gross, who served as a naval officer during the Vietnam War, is more than just a successful money manager. He also has authored numerous articles on the bond market as well as the 1997 book, Everything You’ve Heard About Investing is Wrong, and he is widely respected for his contributions to the theory and practice of financial analysis. Equally impressive, his monthly commentaries, a uniquely entertaining mix of personal anecdotes, investment insights and trenchant opinions on economics and government policy, have helped a whole generation of readers understand and appreciate the world of fixed income investing.
David Hardy, the former head of LCH.Clearnet, played a singular role in the development of derivatives clearing for more than two decades. He began his career in banking with various assignments in the Barclays Group, and in 1985 he began what was intended to be a two-year assignment to the International Commodities Clearinghouse on behalf of Barclays, which was one of the six bank owners at that time. Twenty-one years later he left as chief executive of LCH.Clearnet. While changes to the ownership structure and financial backing were engineered over time, his ultimate legacy was a clearinghouse with likely the greatest range of risk management services for its clearing members and exchanges around the globe. Early in his career, he recognized the need for collaboration, or consolidation, between clearinghouses in order to achieve the greatest risk benefits for users. His belief was borne out during numerous default situations starting with Drexel Burnham Lambert, and he played a leading part in the post-Barings inter-clearinghouse co-operation agreements.
Leslie V. Hosking
Les Hosking, currently managing director of the National Electricity Market Management Company, served as the chief executive and managing director of the Sydney Futures Exchange from 1985 to 2000. Hosking transformed SFE from a small domestic commodity exchange into a truly international financial futures market. Under his leadership, SFE was the first exchange out side of the U.S. to launch financial futures (1979), stock index futures (1983}, and individual share futures (1994). Hosking was also ahead of the curve in terms of the push from floor to screen-based trading. Under his leadership, SFE rolled out Sycom in 1989, making it one of the first exchanges anywhere in the world to offer screen trading as an alternative to open outcry. Ten years later, SFE was one of the first exchanges to permanently close its trading floor and convert to all-electronic trading. Hosking is also remembered for his "locals program"-an initiative to get Chicago-based traders to come to Australia and share their expertise during SFE's formative years-and his koala bears at FIA Futures & Options Expo. But most importantly, Hosking was more than the CEO of SFE. He was truly a founder of the whole futures industry in Australia.
Paul Jacot holds a unique place in the history of futures and options trading in Europe. As the chairman of the Swiss Futures and Options Association from 1990 to 2001, he presided over an important component of our industry at a time of extraordinary and growth. Thanks to his leadership and extensive network of contacts in banking and international commodity trading, the SFOA's annual fall meeting grew to become an important international gathering of exchange leaders, market participants and government officials in the futures and options markets. The discussions and decisions inspired by the Bürgenstock conference deserve no small share of the credit for the tremendous advance of European derivatives exchanges during this period of time. Jacot continues to be a member of SFOA today and is currently serving as its president and chief executive officer. He also co-founded and served as the first editor in charge of the Swiss Derivatives Review, and for many years he was a prominent member of the International Finance and Commodities Institute.
Philip McBride Johnson
As a prominent member of the U.S. derivatives bar for more than four decades, Philip Johnson has left a lasting imprint on both the securities and the futures markets. Early in his career, he helped draft key provisions of the Commodity Futures Trading Commission Act of 1974 that made the CFTC the sole regulator of the U.S. futures industry. In 1982, while serving as chairman of the Commodity Futures Trading Commission, he entered into what became known as the Shad-Johnson Accord, a landmark agreement with the Securities and Exchange Commission that established a clear demarcation of the two agencies’ jurisdiction over equity derivatives and allowed futures on broad-based stock indices to trade without entanglement in jurisdictional disputes. Over the course of his long career, Johnson’s work has helped build some of the most important elements of the legal framework for these crucial markets. He now heads the commodities, futures and derivatives products practice group at the law firm of Skadden, Arps, Slate, Meagher & Flom.
Juliette Proudlove (Jools) had a special zest for life... and for Liffe—the London International Financial Futures Exchange. She exemplified the spirit of the exchange from the early days. She left a City of London property company to join Liffe in April 1982 when it was just a handful of people working tirelessly to get the exchange up and running by September. Her first task was to manage the publications that supported the exchange’s education and marketing programs. Her major contribution, however, was her role in membership. She fostered the development of the local trading fraternity during the open outcry years and she managed the merger of cultures when Liffe acquired the London Traded Options Market and the London Commodity Exchange. She was most recently head of group corporate communications for Euronext. Proudlove had a rare ability to form lasting friendships wherever she went and became one of the best known, loved and respected people in the global futures industry.
Edmund R. Schroeder
Ed Schroeder, over the course of several decades, has played a critical role in helping to shape futures trading laws. As an attorney specializing in futures trading laws, he has represented commodity exchange and clearing organizations including: ICE Futures U.S., the Board of Trade of the City of New York, the Coffee, Sugar & Cocoa Exchange and the New York Clearing Corp. Most recently he retired as partner and senior counsel at the law firm Cadwalader, Wickersham & Taft. Over the years, he has been instrumental in shaping early commodity trading laws, serving from 1975-76 on the CFTC’s Advisory Committee on the Definition and Regulation of Market Instruments. He was the founder and first chairman of the Committee on Commodities Regulation of the Bar Association of the City of New York from 1976 through 1981 and is currently a member emeritus. On a broader scale, Schroeder chaired the American Bar Association’s Committee on Commodities Regulation from 1981 through 1986, and he has appeared as a witness before Congress on amendments to the Commodity Exchange Act and to commodity broker provisions of the U.S. Bankruptcy Code.
Gary Seevers, after serving on the President’s Council of Economic Advisers both as a staff economist and as one of three members on the panel during the Nixon administration, was appointed in 1975 by President Ford as a founding commissioner at the Commodity Futures Trading Commission. After serving a four-year term at the CFTC, during which he was also acting chairman for six months, he joined Goldman Sachs, devoting many years to establishing and expanding a global futures business for the Wall Street firm. At the time, Goldman was one of the first futures commission merchants among investment banks. Seevers was later voted as a general partner in the firm and moved to Tokyo as head of fixed income and to co-head Goldman Sachs in Asia. The time he worked in Tokyo, from 1987-1990, was one of rapid expansion in securities markets in Asia and when several futures exchange in Japan started up. Until retirement from Goldman Sachs in 1994, when he became a limited partner, he worked in New York, managing the firm’s growing global futures business.
Stephen F. Selig
Stephen Selig has had a dynamic role in shaping commodity futures trading laws and in representing the interests of both futures commission merchants and exchanges. Selig played a major role in the formation of the Futures Industry Association, serving as outside counsel in its key formative years. He most recently served as senior counsel to the law firm Brown Raysman Millstein Felder & Steiner, and over the course of his career he served on critical advisory panels and committees both in the legal and regulatory arena. He sat on the Commodity Futures Trading Commission’s Advisory Committee on the Definition of Regulation of Market Instruments, a critical panel that has helped set the framework for U.S. commodity laws. From 1985 through 1988, he chaired the Bar Association of the City of New York’s Committee on Futures Regulation and from 1993 through 1997 he chaired the American Bar Association’s Committee on Derivatives and Futures Law. He has also been a great teacher of commodities law as an adjunct professor at New York University’s School of Law and through his involvement at the Columbia University School of Law’s seminars on derivatives law and regulation.
Ng Kok Song
Ng Kok Song, currently managing director and group chief investment officer of the Government of Singapore Investment Corporation, pioneered the establishment of the first financial futures exchange in Asia, the Singapore International Monetary Exchange. He was a key member of the team that conceived and expanded the trading of gold futures to include financial futures at the Gold Exchange of Singapore. The Gold Exchange was renamed SIMEX, and Ng became its first chairman from 1984 to 1987. SIMEX subsequently merged with the Stock Exchange of Singapore in 1999 to form the Singapore Exchange.
Together with CME chairman Leo Melamed, Ng created the mutual offset arrangement between the two exchanges in 1984, one of the earliest and most successful exchange linkages in the history of the derivatives industry. It was also under Ng’s leadership that SIMEX launched its Nikkei 225 futures contract – the world’s first Nikkei futures contract and still the flagship futures contract in the exchange’s comprehensive suite of Asian derivatives product offerings.
Vincent J. Viola
Vincent Viola has been one of the leading figures in the New York commodity futures community for many years and an important force for innovation in electronic trading and clearing. A graduate of the United States Military Academy at West Point and the New York Law School, he began his financial career as a local on the floor of the New York Mercantile Exchange. He became a member of the exchange in 1982 and served as a director from 1987 to 1990, vice chairman from 1993 to 1996, and chairman from 2001 to 2004. When Nymex was nearly destroyed by the September 2001 terrorist attacks, his leadership and hands-on involvement in getting Nymex reopened were critical in the exchange’s remarkably rapid recovery from this unprecedented disaster. It was also under his leadership that Nymex created the Clearport facility for clearing energy derivatives traded in the over-the-counter markets. Clearport proved to be immensely beneficial not only for the exchange but also for the wider energy market, and it is now a model for clearing a much wider range of OTC products. Viola also established several companies during his career, including Pioneer Futures, a New York-based clearing firm, and International Derivatives Clearing Group, a trading and clearing platform for interest rate swaps.