For Crying Out Loud : From Open Outcry to the Electronic Screen

by Leo Melamed; Foreword by: Craig Donohue

• ISBN13: 9780470530818
• ISBN10: 0470530812
• Format: eBook
• Copyright: 2009-07-01
• Publisher: Wiley

Summary

In Praise of For Crying Out Loud"Endowed with strong parents and a bit of luck, Leo Melamed has made a remarkable escape from Nazi occupied Poland to building one of the pinnacles of global finance. Over four decades and more, he was the leading force in bringing his beloved 'Merc' from obscure trading pits for butter and eggs, and pork bellies to a model of electronic efficiency, handling billions of financial contracts, almost instantaneously with certainty of execution. Leo's pride in the Merc's safeguards against risk are justified by its sustained market performance in the midst of the financial crisis. For Crying Out Loud is not only a fascinating human story, but a remarkable tale of spurring innovation within a framework of prudence." -Paul A. Volcker"Leo Melamed has written an adventure story worthy of Hemingway. It's also a spy thriller and historic chronicle. It is the defining account of modern change that comes to an industry as old as Bedouins trading sheep on a dusty rock. Seen from the ultimate insider, we glimpse a world unseen and unknown to most of us. It is a very important work that could become a business school bible." -Bill Kurtis, Kurtis Productions, Ltd."Leo Melamed provides a brilliant description and analysis of the history and evolution of Globex, the CME's electronic trading platform that transformed the way futures are traded around the world. )He combines political intrigue, cooperative collations, tradeoffs between personal and combined wealth incentives, and innovative ideas necessary to change the course of history of the CME. With myriad possible outcomes along the way, his story reads at times like a wondrous mystery novel. Congratulations on a marvelous book." -Myron S. Scholes, Frank E. Buck Professor of Finance, Emeritus, Stanford University"As a seminal figure in the derivatives industry, Leo Melamed has been a driving force in the global expansion of CME Group and futures trading. This book ably recounts the struggles and triumphs of his career, tracing its trajectory over half a century of innovation. His contribution to the effective working of financial markets cannot be overstated, and the positive impact of his ideas continues to be felt. It has been a privilege to know and work with him." -Terrence A. Duffy, Executive Chairman, CME Group Inc."Melamed's book is a fascinating history of financial innovation surrounding the futures exchanges. It reveals the complex barriers to innovation, obstacles an outsider would never imagine, and shows how a spirit of flexibility, patience, and entrepreneurship can overcome them. It is also a testimony to the power of self-regulation, worth understanding at this time of calls for massive increases in government regulation of our financial markets." -Robert Shiller, Arthur M. Okun Professor of Economics, Yale University, and Chief Economist, MacroMarkets LLC"Leo Melamed takes us inside the boardroom to understand the politics of running the Chicago Mercantile Exchange in the context of its successful transformation from open outcry to round-the-clock electronic trading, the merger with the Chicago Board of Trade, and the transformation to a publicly traded company." -Michael H. Moskow, Vice Chairman and Senior Fellow on the Global Economy, the Chicago Council on Global Affairs, and former president, Federal Reserve Bank of Chicago"For Crying Out Loud is an historical account of the evolution from trading floor to electronic trading that derives its color and detail as a personal diary of Leo Melamed, who, along with his peer pioneers, guided the financial services industry through colossal changes over several decades. No one was closer to the succession of events that shifted global capital from trading pits to computer bits than Leo." -Russell

Table of Contents

Foreword

Preface

Acknowledgments

Authors Note

Battling The Tyranny Of The Status Quo

Countdown to Liftoff

Globex: The Fundamental Difference

EOA: The Rocket Propellant Fuel

E-Mini: Springboard for the Mexico Success

Strategic Commotion: Planning the Journey

Global Competition: The Ultimate Enforcer

Demutualization: Stepping on the Moon

Dot-Coming: The False Paradise

Cabal: Boardroom Intrigue

Baptism by Fire: Sweet Victory

Postscript: Globex Time Line

Messenger From The Futures

Tomorrows Technological Tidal Wave

Wakeup Call

Reminiscences of a Refugee

The Need for Futures Markets in an Emerging World Economy

Panel on the Stock Market Crash of 1987

Preface to the Japanese Translation of Escape to the Futures

Pain, Progress, and Promise: Reflections on the Twentieth Century

There Are No Jews in Bialystok

Chicago Futures in the Twenty-First Century

Merton Miller, 1923 2000

Buy a Call on the Snake: Traditional Exchanges in an E-Commerce World

Transformation of Futures Exchanges

Our Middle Name

CME Center for Innovation

Remarks at the Celebration of the Chinese-Language Publication of Escape to the Futures

Knowledge Tag

CME Fred Arditti Award

Math Is in Our Futures

If Its Good Enough for Milton

Education: The Only Thing that Never Fails

The Boy of Steel

CME: The House that Innovation Built

The Law of Selective Gravity

The Gray Swan

Appendixes

The Third Milestone 263

Letter to Milton Friedman 268

Its Time for a Change 270

A Brief Whos Who of the Members of the Equity Owners

Association

A Merged Future for Two Exchanges?

The Merc Fights for Self-Regulation

Dear Equity Owner

Equity Owners

Association Status Report

Creating a New Alliance-Why Here and Now?

Chairman Emeritus Remarks

Open Letter to the Members of the Chicago Mercantile Exchange

A Return to the Table

James J. McNulty Joins CME as President and Chief Executive Officer

CME Names McNulty New President and CEO

Chicago Mercantile Exchange Holdings Inc. Board Elects Officers

Letter to Audit Committee from Scott Gordon

Futures

Future Isnt in Chicago

Notes

About the Author

Index

Table of Contents provided by Publisher. All Rights Reserved.