Terrence A. Duffy

Last updated
Terrence A. Duffy
Terry Duffy.jpg
NationalityAmerican
Education University of Wisconsin-Whitewater
Occupation(s)Executive officer and CEO (derivatives trading)
OrganizationCME Group
Children2

Terrence A. Duffy (born 1958) is an American businessman. He is the chairman and chief executive officer of CME Group, a derivatives marketplace based in Chicago, Illinois.

Contents

Duffy began working at the Chicago Mercantile Exchange in 1980. He joined the CME board in 1995. He served as vice chairman from 1998 to 2002 and as chairman from 2002 onwards. Duffy led the company's substantial mergers and acquisitions, including most notably when Chicago Mercantile Exchange acquired its cross-town rival Chicago Board of Trade, followed by acquisitions of New York Mercantile Exchange and later NEX Group. Duffy has served in the chairman and chief executive role since November 2016.

In 2003, Duffy was appointed by President Bush and confirmed by the U.S. Senate as a member of the Federal Retirement Thrift Investment Board (FRTIB), a position he held until 2013.

Early life and education

Terrence A. Duffy was born in 1958 to John J. Duffy and Barbara Duffy. [1] [2] His grandfather, John F. Duffy, was a Chicago alderman who eventually became Cook County Board president. [3] [4]

Duffy grew up on Chicago's southwest side in the Mount Greenwood neighborhood and graduated from Leo High School in 1976. [5] [6] The neighborhood was home to many Chicago police and firefighters, and Duffy has said that while growing up he thought one of these positions would be his career path. [7]

Duffy attended the University of Wisconsin-Whitewater. [7] While going to school, he worked nights at a bar called Chuck's in Lake Geneva, an affluent resort town popular with wealthy Chicagoans. [8] [9] There he met Vincent Schreiber, a Chicago Mercantile Exchange trader who convinced Duffy to take up a career in trading and eventually became his professional mentor. [8] [7]

Career

Chicago Mercantile Exchange and TDA Trading

Duffy began working as a runner at the Chicago Mercantile Exchange in 1980, [9] and founded his own firm, TDA Trading, in 1981. [10] [11] In 1984, Duffy bought a CME membership with the help of a $50,000 loan from his parents secured by a mortgage they took out on their home. [9] Shortly after he bought his membership and while working as a broker, he incurred a loss of $150,000 because of a misheard order. [12] “This was my family home. My brother and sisters were still living there. It was $150,000, but it may as well have been a million or $2 million,” Duffy told Crain's in 2013. [5]

Vincent Schreiber, who had introduced Duffy to the trading world several years before, helped Duffy pay back the debt by offering his guarantee to the clearing firm. [5] Duffy continued trading by day and tending bar by night to pay back the debt over the next three years. [5]

In 1995 Duffy joined the CME's board, [9] and in 1998 was elected vice chairman. [13] Duffy pushed for the CME to embrace electronic trading during this period. [14] [15]

In April 2002, Duffy became chairman of the CME board and, in December 2002, CME became the first U.S. exchange to go public. [16] [9] [17]

CME Group

On October 17, 2006, the Chicago Mercantile Exchange announced a merger with the Chicago Board of Trade in an $8 billion deal. [18] The combined exchanges would be known as the CME Group, and would represent the world's largest market for financial derivatives contracts. [18] Duffy and his counterpart at the Chicago Board of Trade, Charles Carey, negotiated the deal, along with other executives. [19] Duffy served as chairman of the combined company, [20] and is credited with leading the CME Group's acquisition of the New York Mercantile Exchange in 2008. [21] He began to serve as executive chairman and president in 2012, and in November 2016 took on an expanded role as chief executive officer. [21]

In 2018, Duffy led CME Group's acquisition of London-based NEX Group. [22] In 2021 he negotiated a deal to move CME Group's technology to Google Cloud in order to increase access to the company's products. [23] In addition, Google invested $1 billion in CME Group. [23] [24]

Board service

Duffy joined the CME board in 1995 and has served as chairman of the CME Group board since 2002. [9] [16] Duffy also serves on the board of directors of World Business Chicago, the board of regents for Mercy Home for Boys and Girls, the board of trustees of Saint Xavier University, and is co-chair of the Mayo Clinic Greater Chicago Leadership Council. [25] [26]

Duffy was appointed by President Bush and confirmed by the U.S. Senate in 2003 as a member of the Federal Retirement Thrift Investment Board (FRTIB), a position he held until 2013. [4]

FTX criticism

Duffy said he suspected corruption at the cryptocurrency exchange on the day of his first one-on-one meeting with founder Sam Bankman-Fried, months before the historic FTX collapse. Duffy first recounted his meeting with Bankman-Fried last week on the “On the Tape” podcast. “You’re a fraud. You’re an absolute fraud,” Duffy said he told Bankman-Fried. [27]

Personal life

Duffy and his wife, Jenny, have two children. [5] [28]

Duffy received a Doctor of Public Service, honoris causa, from Saint Xavier University in 2019 and a Doctor of Humane Letters from DePaul University in 2007. [29] [25]

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References

  1. ↑ "CME Group Inc". Yahoo Finance. Retrieved March 3, 2022.
  2. ↑ Wisby, Gary (April 19, 2004). "Barbara Duffy, 70, longtime South Side florist". Chicago Sun-Times– via Nexis.
  3. ↑ "John F. Duffy, 63, Chicago Official". The New York Times. July 2, 1962. Retrieved March 2, 2022.
  4. 1 2 Marek, Lynne (October 31, 2011). "TRADING PLACES; CME's Duffy emerges as exchange's politicker-in-chief". Crain's Chicago Business. Crain Communication. Retrieved March 2, 2022.
  5. 1 2 3 4 5 Kapos, Shia (June 24, 2013). "CME's Terry Duffy on the trade that changed his life". Crain's Chicago Business. Crain Communication. Retrieved March 2, 2022.
  6. ↑ "Since Leo High School's founding in 1926, Leo graduates have been leaders and innovators in all walks of life". Leo High School. Retrieved March 3, 2022. TERRENCE A. DUFFY '76 Executive Chairman and President, the CME Group.
  7. 1 2 3 Marksjarvis, Gail (May 26, 2017). "Early market loss taught CME Group CEO Terry Duffy discipline". Chicago Tribune. Tribune Publishing. Retrieved March 3, 2022.
  8. 1 2 Weizman, Hal (November 7, 2011). "From bar to floor to boardroom". Financial Times. Retrieved March 2, 2022.
  9. 1 2 3 4 5 6 Lambert, Emily (January 11, 2008). "Up From the Pits". Forbes. Retrieved March 2, 2022.
  10. ↑ "CME Group Executive Chairman Terrence A. Duffy". Illinois Tech. May 6, 2014. Retrieved March 9, 2022.
  11. ↑ Nominations of Terrence A. Duffy, Susanne T. Marshall, and Neil A.G. McPhie. US: U.S. Government Printing Office. 2003. p. 6. ISBN   9780160708886 . Retrieved March 9, 2022.
  12. ↑ "The futures of capitalism". The Economist. May 11, 2013. Retrieved March 2, 2022.
  13. ↑ "The Chicago Mercantile Exchange". Securities Week. The McGraw-Hill Companies, Inc. December 21, 1998 – via Nexis. The Chicago Mercantile Exchange elected its board of directors. Terrence Duffy, president of TDA Trading, was elected vice chairman; James Oliff, president of FILO Corp., was selected second vice chairman; Martin Gepsman, an independent floor broker and trader, was appointed secretary; and Thomas Kloet, senior vp of ABN Amro Bank; was named treasurer. CME Chairman Scott Gordon, is in the middle of a two-year term.
  14. ↑ Lambert, Emily (January 11, 2008). "Up From the Pits". Forbes. Retrieved March 2, 2022. Over the six years of Duffy's tenure CME has embraced electronic trading, gone public, acquired its onetime largest competitor and increased daily volume from 2.2 million to 14 million contracts.
  15. ↑ Fox, Loren (March 2007). "Today Chicago, Tomorrow…". Institutional Investor. Retrieved March 9, 2022. The CME had already come a long way before the merger. After decades of playing second fiddle to the older CBOT, it embraced electronic trading in the 1990s and converted from a member-owned cooperative to a stock corporation.
  16. 1 2 "Parent of Chicago Mercantile Exchange plans dlrs 150 million IPO". Associated Press International. June 10, 2002 – via Nexis. In April, the CME ousted its chairman, Scott M. Gordon, succeeding him with Terrence A. Duffy, a longtime trader who said he planned to focus his efforts on deal making, possibly including a merger with the rival Chicago Board of Trade.
  17. ↑ Weber, Lara; Sottardi, Drew (December 3, 2002). "Merc on verge of going public". Chicago Tribune. Retrieved March 3, 2002. The Chicago Mercantile Exchange plans to go public this week, becoming the first U.S. financial market to sell stock in itself. The CME is expected to launch its initial stock offering after the close of trading Thursday on the New York Stock Exchange, with initial trading of the stock planned for Friday.
  18. 1 2 Barrionuevo, Alexei (October 18, 2006). "2 Exchanges in Chicago Will Merge". The New York Times. Retrieved March 9, 2022.
  19. ↑ Fox, Loren (March 2007). "Today Chicago, Tomorrow..." Institutional Investor. Retrieved March 9, 2022.
  20. ↑ "CME to Buy CBOT for $8b". CIO. IDG Communications. October 17, 2006. Retrieved March 9, 2022.
  21. 1 2 Shaffer, Erica (November 15, 2016). "Duffy to CEO of CME Group". World Grain. Sosland Publishing. Retrieved March 9, 2022.
  22. ↑ Sozzi, Brian (March 29, 2018). "CME Group Agrees $5.5 Billion Merger With Britain's NEX". TheStreet. Retrieved March 9, 2022. CME Group's (CME) long-time CEO Terry Duffy wasn't kidding when he told TheStreet back in December he was nearing an acquisition.
  23. 1 2 Mickle, Tripp; Tilley, Aaron (December 29, 2021). "Google and Tech Rivals Tap Cash Reserves to Realize Cloud Ambitions". Wall Street Journal. Dow Jones & Company. Retrieved March 9, 2022. During negotiations to move its trading system to Google Cloud, CME Group Chief Executive Terry Duffy made an investment in his firm key to a deal. "I wanted a partner, not just a cloud provider," Mr. Duffy said in an interview.
  24. ↑ Miller, Ron (November 4, 2021). "Google invests $1B in CME Group as part of long-term Google Cloud deal". TechCrunch. Retrieved March 2, 2022.
  25. 1 2 "Wall Street 50 – 2009". Irish America. Retrieved March 3, 2022.
  26. ↑ "Terrence A Duffy Chairman/CEO, Cme Group Inc". Bloomberg . Retrieved March 3, 2022.
  27. ↑ Landsman, Stephanie. "CME Group CEO calls Bankman-Fried 'an absolute fraud,' says he saw trouble months before FTX collapse". CNBC. Retrieved 2023-03-09.
  28. ↑ Chaparro, Frank (January 25, 2017). "The CEO of a giant Chicago company says big business has 'a moral obligation' to help struggling cities". Insider. Retrieved March 2, 2022.
  29. ↑ "Honorary Degree Recipients And Commencement Speakers". Saint Xavier University. Retrieved March 3, 2022.
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