David Munro Anderson

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David Munro Anderson
Born (1937-12-15) 15 December 1937 (age 86)
NationalityScottish
Education Morrison's Academy
Strathallan School
OccupationBusinessman
Known forInvolvement in creation of London's futures contract trading industry
Military career
AllegianceFlag of the United Kingdom.svg  United Kingdom
BranchFlag of the British Army.svg  British Army
Unit Black Watch
Deployment West Africa

David Munro Anderson (born 15 December 1937) is a Scottish businessman with a distinguished career in the City of London. [1] [2] He was closely involved in the development of the futures contract trading industry in London. Anderson was chairman of the formation committee for the International Petroleum Exchange, joint chairman of the formation committee for the Baltic International Freight Futures Exchange and former vice-chairman of the London Commodity Exchange. [3] As a director of the Securities and Investments Board (SIB) he played a key role in implementing the Financial Services Act 1986 in the United Kingdom. [3]

Contents

Education

Anderson was educated at Morrison's Academy and Strathallan School in Perthshire. [4] He was commissioned in the Black Watch and served in West Africa. [4] He worked in tea production with James Findlay & Company in India between 1959 and 1962 before briefly joining the London Chamber of Commerce and Industry for one year. [4]

Career

In 1963 Anderson joined ED&F Man Ltd, which had been established as a sugar trader in London in 1783. [5] Over the years the company would trade in a diverse range of commodities. [5] In 1971 he founded one of the first independent privately owned futures brokers in London, and developed the concept of investment management in futures and options. In 1974 he launched one of the first futures and options funds in the world. Anderson sold his interests in his own company and in 1981 established along with ED&F Man Ltd, the futures broking, stock broking and investment management company, Anderson Man Limited, ED&F Man Ltd's first move into the futures market. [6] [7]

Anderson was responsible for the development of the alternative investment management business and played a leading role in the development of the structured/guaranteed wrapper for derivative investment products. In 1985 Anderson Man Limited evolved into ED&F Man International Limited with Anderson as chairman from 1986–1990 and later into Man Financial. ED&F Man Ltd listed on the London Stock Exchange in 1984 and changed its name to the Man Group in 2000. ED&F Man Ltd, the commodities business, separated from the Man Group in the same year following a management buyout. [5] Man Financial remained part of the Man Group.

In 1980 Anderson was appointed the chairman of the formation committee for the International Petroleum Exchange (IPE) in London. [3] The Exchange was founded by a group of energy and futures companies in response to the instability of the price of oil; their first futures contract was launched in 1981. The IPE would become one of the largest energy futures and options exchanges in the world. In 2001, it was acquired by the Atlanta-based Intercontinental Exchange (ICE), and is presently called Ice Futures Europe. The IPE was an open outcry exchange until 2005 when all trading was shifted onto an electronic trading platform.

Anderson was also joint chairman on the formation committee of the Baltic International Freight Futures Exchange (BIFFEX) based in London, a market for trading futures contracts relating to the cost of transporting dry basic materials by sea in 1985. [3] The market gave owners and charterers the ability to protect themselves from fluctuating freight rates. [8] Initially the exchange was moderately successful, however contracts ceased trading due to a lack of liquidity in 2001.

In 1986 Anderson was appointed a director of the Securities and Investments Board and oversaw the implementation of the Financial Services Act 1986. The aim of the Act was to regulate the financial services industry using a mixture of government regulation and self-regulation. The Act created the Securities and Investments Board which presided over various self-regulation organisations (SRO's). The Act forced all the Baltic futures markets to unite under the banner of the Baltic Futures Association and trading was re-located to the London Commodity Exchange. [8] Anderson was also vice-chairman of the London Commodity Exchange. [3]

In 1990 Anderson became chairman of Anderson Quantrend Limited. He has also held numerous senior executive positions and is a member of the Chartered Institute for Securities & Investment. [3] Anderson was founder and chairman of the Association for Futures Investment and a former council member of the Association of Futures Brokers and Dealers, which became part of the Financial Services Authority. [3]

Related Research Articles

In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the underlying. Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets.

<span class="mw-page-title-main">Commodity market</span> Physical or virtual transactions of buying and selling involving raw or primary commodities

A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.

Australian Securities Exchange Ltd (ASX) is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange. The ASX was formed on 1 April 1987, through incorporation under legislation of the Australian Parliament as an amalgamation of the six state securities exchanges, and merged with the Sydney Futures Exchange in 2006.

In finance, a futures contract is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price of the contract is known as the forward price or delivery price. The specified time in the future when delivery and payment occur is known as the delivery date. Because it derives its value from the value of the underlying asset, a futures contract is a derivative.

A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures exchanges provide physical or electronic trading venues, details of standardized contracts, market and price data, clearing houses, exchange self-regulations, margin mechanisms, settlement procedures, delivery times, delivery procedures and other services to foster trading in futures contracts. Futures exchanges can be organized as non-profit member-owned organizations or as for-profit organizations. Futures exchanges can be integrated under the same brand name or organization with other types of exchanges, such as stock markets, options markets, and bond markets. Non-profit member-owned futures exchanges benefit their members, who earn commissions and revenue acting as brokers or market makers. For-profit futures exchanges earn most of their revenue from trading and clearing fees.

A hedge is an investment position intended to offset potential losses or gains that may be incurred by a companion investment. A hedge can be constructed from many types of financial instruments, including stocks, exchange-traded funds, insurance, forward contracts, swaps, options, gambles, many types of over-the-counter and derivative products, and futures contracts.

<span class="mw-page-title-main">New York Mercantile Exchange</span> American futures exchange

The New York Mercantile Exchange (NYMEX) is a commodity futures exchange owned and operated by CME Group of Chicago. NYMEX is located at One North End Avenue in Brookfield Place in the Battery Park City section of Manhattan, New York City.

<span class="mw-page-title-main">Commodity Futures Trading Commission</span> Government agency

The Commodity Futures Trading Commission (CFTC) is an independent agency of the US government created in 1974 that regulates the U.S. derivatives markets, which includes futures, swaps, and certain kinds of options.

<span class="mw-page-title-main">Singapore Exchange</span> Investment holding company in Singapore

Singapore Exchange Limited is a Singapore-based exchange conglomerate, operating equity, fixed income, currency and commodity markets. It provides a range of listing, trading, clearing, settlement, depository and data services. SGX Group is also a member of the World Federation of Exchanges and the Asian and Oceanian Stock Exchanges Federation. it is ASEAN's second largest market capitalization after Indonesia Stock Exchange at US$585.97 billion as of September 2023.

<span class="mw-page-title-main">Baltic Exchange</span> UK company that operates as a marketplace for shipbrokers, ship owners and charterers

The Baltic Exchange is a membership organisation for the maritime industry, and freight market information provider for the trading and settlement of physical and derivative contracts.

An energy derivative is a derivative contract based on an underlying energy asset, such as natural gas, crude oil, or electricity. Energy derivatives are exotic derivatives and include exchange-traded contracts such as futures and options, and over-the-counter derivatives such as forwards, swaps and options. Major players in the energy derivative markets include major trading houses, oil companies, utilities, and financial institutions.

<span class="mw-page-title-main">Options Clearing Corporation</span> Financial services business

Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 16 exchanges. Started by Wayne Luthringshausen and carried on by Michael Cahill. Its instruments include options, financial and commodity futures, security futures, and securities lending transactions.

<span class="mw-page-title-main">CME Group</span> American financial derivatives company

CME Group Inc. is a financial services company. Headquartered in Chicago, the company operates financial derivatives exchanges including the Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, and The Commodity Exchange. The company also owns 27% of S&P Dow Jones Indices. It is the world's largest operator of financial derivatives exchanges. Its exchanges are platforms for trading in agricultural products, currencies, energy, interest rates, metals, futures contracts, options, stock indexes, and cryptocurrencies futures.

LCH is a financial market infrastructure company headquartered in London that provides clearing services to major international exchanges and to a range of OTC markets. The LCH Group includes two main entities: LCH Limited based in London and LCH SA based in Paris.

The international shipping industry can be divided into four closely related shipping markets, each trading in a different commodity: the freight market, the sale and purchase market, the newbuilding market and the demolition market. These four markets are linked by cash flow and push the market traders in the direction they want.

<span class="mw-page-title-main">Winton Group</span> British investment management firm

Winton Group, Ltd is a British investment management firm founded by David Harding. In the United States, Winton is registered with the Securities and Exchange Commission as an investment advisor and with the Commodity Futures Trading Commission as a CTA, and is authorised by the Financial Conduct Authority in the UK. The company trades on more than 100 global futures markets in a wide variety of asset classes and on global equity markets. The firm was launched with $1.6 million in 1997, reached a peak of $28.5 billion in assets under advisement, before dropping to $7.3 billion by late 2020. Winton Group has six offices around the world: London, New York, Hong Kong, Shanghai, Sydney, and Abu Dhabi.

A commodity trading advisor (CTA) is US financial regulatory term for an individual or organization who is retained by a fund or individual client to provide advice and services related to trading in futures contracts, commodity options and/or swaps. They are responsible for the trading within managed futures accounts. The definition of CTA may also apply to investment advisors for hedge funds and private funds including mutual funds and exchange-traded funds in certain cases. CTAs are generally regulated by the United States federal government through registration with the Commodity Futures Trading Commission (CFTC) and membership of the National Futures Association (NFA).

A managed futures account (MFA) or managed futures fund (MFF) is a type of alternative investment in the US in which trading in the futures markets is managed by another person or entity, rather than the fund's owner. Managed futures accounts include, but are not limited to, commodity pools. These funds are operated by commodity trading advisors (CTAs) or commodity pool operators (CPOs), who are generally regulated in the United States by the Commodity Futures Trading Commission and the National Futures Association. As of June 2016, the assets under management held by managed futures accounts totaled $340 billion.

References

  1. ↑ "David Anderson". MarketVisual. 2012. Retrieved 5 December 2012.
  2. ↑ "David Anderson". Bloomberg Businessweek . 2012. Retrieved 5 December 2012.
  3. 1 2 3 4 5 6 7 "Insch Capital Management hires Anderson as non-executive chairman". www.hedgeweek.com. 15 November 2007. Retrieved 5 December 2012.
  4. 1 2 3 "Anderson, David Munro" . Who's Who . Vol. 2016 (November 2015 online ed.). A & C Black. Retrieved 29 December 2015.(Subscription or UK public library membership required.)
  5. 1 2 3 "ED&F Man – History". ED&F Man Ltd. 2012. Retrieved 5 December 2012.
  6. ↑ "The unlikely ascent of Man". Institutional Investor . 1 December 2002. Retrieved 5 December 2012.
  7. ↑ "ED&F Man – History Timetable". ED&F Man Ltd. 2012. Archived from the original on 1 October 2012. Retrieved 5 December 2012.
  8. 1 2 "History 1949-Today". Baltic Exchange. 2012. Archived from the original on 5 March 2012. Retrieved 5 December 2012.
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