SGX 728x90 Banner

CME Group’s Terry Duffy Gets Warm Reception from Josh King’s Inside the ICE House Podcast

John Lothian

John Lothian

Executive Chairman and CEO

Duffy Visits NYSE, Site of 2002 CME IPO, Which He Called One of HIs Biggest Achievements

In the Inside the ICE House podcast series, Josh King of Intercontinental Exchange really does a good job of warming up the audience and the interviewee, as well as with the subject matter. He does such a good job, he was able to get “the Mike Ditka of the exchange business,” Terry Duffy of the CME Group, to visit the New York Stock Exchange and sit for a terrific interview on both of their parts.

Such was the way King, a New England Patriots football team fan still smarting from the spanking given to his Patriots by the 1985 Bears in Super Bowl XX, described the veteran trader, broker and exchange leader Duffy. The interview was recorded shortly after the most recent Super Bowl, and King described the global competition around the clock between ICE and CME as the Super Bowl of global exchanges.

For his part, Duffy described King as the Chris Berman of ESPN, eliciting a laugh from King. 

This was the best interview I have ever heard Terry Duffy give. He was relaxed, outgoing, forthcoming and engaged with King in a conversation that is in the sweet spot of his life’s experiences and interests. 

Duffy took the CME public in 2002 at the NYSE and he described it as “one of the biggest achievements of my career” at the time. 

Duffy was incredibly gracious to King and the NYSE staff, reflecting on the experience of taking the CME public on a day when the NYSE trading floor was still crowded with traders, just like at the CME. 

On December 9, 2002, the day the CME went public, Duffy noted that the exchange was experiencing just under 1 million contracts of average daily volume. Today, the CME Group trades over 23 million contracts per day, Duffy said.  

In 2003, the CME was highlighted in the NYSE Magazine with the title of “Merc to the Market,” with a picture featuring Terry Duffy on the cover. King presented Duffy with a framed copy of the magazine for his office. Duffy indicated he already had the picture in his home. 

King and Duffy discussed Duffy’s family background, including his grandfather John Duffy, who served as a Chicago alderman and president of the Cook County Board. John Duffy was a golden gloves boxer and widower who was a World War I veteran, while Duffy’s father was a Korean War veteran. Duffy said the Korean War took something out of his father.

They also spoke about the time George W. Bush came to the CME a week before 9/11. President Bush described the CME as “entrepreneurial heaven.”

Duffy discussed getting more involved with the CME becoming a public institution and how some members were backing away from having a liquidity event, but everyone was happy after it happened. 

The interview touched on Chicago mayoral politics and how public safety has become such an important issue. Duffy noted that his own wife was carjacked in Chicago at 3:00 p.m. Duffy said this is not an issue for just the city, but it is everywhere – the suburbs and in the country as well. 

Duffy said he believes “social media is the black plague of modern society” while commenting on the issues causing the safety problems. 

There was plenty of well-plowed turf about Duffy’s career in this interview, including a reference to the bar Chuck’s in Fontana, Duffy’s mentor Vincent Schreiber, and Duffy starting as a runner. What was new to me was the fact that Duffy’s mother forged her husband’s signature to the loan documents to mortgage the Duffy home/bungalow so Terry could buy a membership. 

He retold losing $150,000 on a misheard trade, but offered the details that it involved a buy/sell error on a one hundred lot cattle order, which moved substantially against him as he was trying to get out of the error and get the right position filled. Duffy said it took him three years to pay it back after Schreiber backed him with his name but not his money. 

The interview also covered ground about the people who could change with the times and those who could not. It covered how the economies of scale allowed the industry to grow into the global marketplace it is today. 

They recalled a famous lunch at Sullivan’s Steakhouse between key players from the CME and the CBOT and how things had not really changed much from 1970 to 2007. 

There were stories about MF Global, Lehman Brothers, FTX, Bitcoin, Congressional testimony, retail trading and more in this interview. It is worth listening to.

Crisis memory, geopolitics and the risks of financial contagion

Crisis memory, geopolitics and the risks of financial contagion

First Read Hits & Takes John Lothian & JLN Staff When Jack A. Wing died in 2011, I realized the industry was losing some of the pioneers of the financial futures era. Wing founded the masters program in financial engineering at the Illinois Institute of Technology,...

We visit more than 100 financial news websites daily (Would YOU do that?)

Options Discovery

The Stock Market Has Rarely Been This Sleepy

Lead Stories The Stock Market Has Rarely Been This Sleepy Gunjan Banerji - The Wall Street Journal It's eerily calm out there in the stock market. The Cboe Volatility Index, or VIX, dropped below 12 last week, a nearly five-year low. The gauge, based on options prices...

Now Read This

Regulatory Uncertainty Clouds Options Market Innovation

Regulatory Uncertainty Clouds Options Market Innovation

David Dooman, head of options at Dash Financial, a subsidiary of ION Group, expressed concerns about the impact of regulatory uncertainty on the options markets during an interview at the Options Conference in Asheville, NC.  Dooman highlighted several key issues stifling innovation and offered recommendations to address the industry’s challenges.

John Lothian: Week in Review (June  10-14, 2024)

John Lothian: Week in Review (June 10-14, 2024)


The role of the FCM: Futures Discovery EP 10

Today, we’re immersing ourselves in a detailed exploration of the pivotal role of Futures Commission Merchants, commonly known as FCMs. These financial intermediaries play a crucial role in facilitating futures and options trading, serving as a linchpin in the complex web of derivative markets. Understanding the intricate responsibilities and functions of FCMs is essential for navigating the dynamic landscape of modern financial systems.

A Milestone in Indexing: FTSE Russell Celebrates 40 Years of the Russell US Indexes during Russell Reconstitution

A Milestone in Indexing: FTSE Russell Celebrates 40 Years of the Russell US Indexes during Russell Reconstitution

Elmhurst, IL (JLN) -In a recent roundtable, we spoke with Catherine Yoshimoto, director of product management at FTSE Russell; Paul Woolman, Managing Director – Global Head of Equity Index Products from CME Group; and Rick Rosenthal, Managing Director – Global Head of Equity Index Products at Cboe Global Markets. They shared insights on the significance of this year’s Russell Reconstitution and its implications for market participants.

Connamara CEO Prioritizes Regulatory Compliance for Exchange Clients

Connamara CEO Prioritizes Regulatory Compliance for Exchange Clients

Boca Raton, FL (JLN) – Jim Downs, CEO of Connamara Technologies, a provider of exchange infrastructure technology, emphasizes the importance of regulatory compliance for clients during an interview at the FIA’s International Futures Industry Conference in Boca Raton, FL. Connamara’s customer base consists of 40% regulated entities in derivatives and equities markets, with the remaining clients ranging from crypto infrastructures in the US to an equity platform in Brazil, Downs said. Downs highlighted that even unregulated clients aim to operate as if they were regulated, maintaining rulebooks and prioritizing brand reputation, he said.