Phupinder Gill is Leaving the CME Group?

John Lothian

John Lothian

Executive Chairman

Phupinder Gill is retiring at the end of the year, the CME announced. That is the cover story. What the real story is will be more difficult to discover, but this much is clear, this was not the plan.

When I interviewed Gill at a Chicago Executive’s Club luncheon earlier this year we discussed the approach of developing your successor. Gill laid out how the CME had identified a group of CME executives that were all being groomed as successors. To have Terry Duffy named as CEO, and Gill to exit so quickly, smacks of some other kind of decision making.

I suspect there was some kind of confrontation at the board level and an ultimatum. Gill lost. The CME is historic for its rivalries between executives and senior political powers. Terry Duffy won the board battle, and Gill is out.

It will be interesting to see how CME Group may now adjust its strategy, if much at all. The company is heading into much friendlier waters, or so investors believe, with the Trump administration, and its stock is rising dramatically – up to $117.05 yesterday, from $103.07 a week ago, with a market cap of $42.1 billion. The company’s average daily volume so far this year is up 8 percent to 15.4 million contracts, according to its third quarter earnings report held just last week. The CME Group is performing well, with solid growth in volumes coming from Europe, up 20 percent year over year in Q3 and Asia, up 7 percent. While revenues and net income were essentially flat, down 1 percent for the quarter but still solid. It is indeed, a curious move by CME while the company is performing so well on paper.

But this is not a loss for Gill. He won his freedom to retire and enjoy the fruits of a storybook career. He won more time with his teenage son while he is still at home. What will be interesting to see is how many other senior executives will follow Gill out the door in the coming months.

Congratulations to Terry Duffy as the new CME CEO and Bryan Durkin as the new CME president. The CME is in seasoned hands, with a great team behind them. This is your chance to really let your light shine.

(Jim Kharouf contributed to this commentary)

John Lothian Newsletter

Today's Newsletter

GameStop and Bitcoin Renewed a Push to Digitize the Stock Market

GameStop and Bitcoin Renewed a Push to Digitize the Stock Market

First Read $34,126/$300,000 (11.4%) ++++ Hits & Takes John Lothian & JLN Staff There is a new Van Gogh exhibit in New York billed as Van Gogh - The Immersive Experience. The site of this exhibit is the former trading floor of the NYMEX. The NYMEX trading floor...

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

Now Read This

Trading Technologies Announces Matching Program to Benefit GoFundMe Campaign  for MarketsWiki Education Video Series and John Lothian News

Trading Technologies Announces Matching Program to Benefit GoFundMe Campaign for MarketsWiki Education Video Series and John Lothian News

As a pioneer of electronic trading, we at Trading Technologies value our industry’s rich history. We recognize the need to preserve our legacies and lessons to broadly educate and inspire those to come. This is what John Lothian News is doing through the Open Outcry...

JLN Takes ‘A Deeper Dive into the NYSE Group Retail Liquidity Programs’ Research Report with Kevin Tyrrell

JLN Takes ‘A Deeper Dive into the NYSE Group Retail Liquidity Programs’ Research Report with Kevin Tyrrell

Kevin Tyrrell is the head of research for NYSE. He and his team of researchers and economists were intrigued by the market activity during an unprecedented surge in the price of GameStop shares during January 25-29, 2021, and they wanted to see how different OTC trading platforms responded to the order flow, including NYSE’s Retail Price Improvement (RLP) programs.

Pin It on Pinterest

Share This Story