Terrence A. Duffy
{{Short description|American businessman (born 1958)}}
{{for|persons of a similar name|Terrence Duffy (disambiguation)}}
{{Infobox person
| name = Terrence A. Duffy
| image = Terry_Duffy.jpg
| birth_date = {{birth date and age|1958|8|15}}
| birth_place = Chicago, Illinois, U.S.
| title = Chairman and CEO, CME Group
| children = 2
| nationality =
| education = University of Wisconsin-Whitewater
| occupation = Businessman
}}
Terrence A. Duffy (born August 15, 1958) is an American businessman. He is the chairman and chief executive officer of CME Group, a derivatives marketplace based in Chicago, Illinois.
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 on August 15, 1958, in South Side, Chicago, to John J. Duffy and Barbara Duffy.{{cite web |title=Leaders' friendship seals deal |url=https://www.chicagotribune.com/2006/10/18/leaders-friendship-seals-deal/ |work=Chicago Tribune |date=August 21, 2021 |access-date=January 19, 2025}}{{cite news |last=Wisby |first=Gary |date=April 19, 2004 |title=Barbara Duffy, 70, longtime South Side florist |work=Chicago Sun-Times |via=Nexis}} His grandfather, John F. Duffy, was a Chicago alderman who eventually became Cook County Board president.{{cite news |date=July 2, 1962 |title=John J. Duffy, 63, Chicago Official |url=https://timesmachine.nytimes.com/timesmachine/1962/07/04/89506498.html?pageNumber=17 |work=The New York Times |access-date=March 2, 2022}}{{cite news |last=Marek |first=Lynne |date=October 31, 2011 |title=TRADING PLACES; CME's Duffy emerges as exchange's politicker-in-chief |url=https://www.chicagobusiness.com/article/20111029/ISSUE01/310299982/trading-places |work=Crain's Chicago Business |publisher=Crain Communication |access-date=March 2, 2022}}
Duffy grew up on Chicago's southwest side in the Mount Greenwood neighborhood and graduated from Leo High School in 1976.{{cite news |last=Kapos |first=Shia |date=June 24, 2013 |title=CME's Terry Duffy on the trade that changed his life |url=https://www.chicagobusiness.com/article/20130622/ISSUE09/306229973/profile-terry-duffy-executive-chairman-and-president-of-cme-group |work=Crain's Chicago Business |publisher=Crain Communication |access-date=March 2, 2022}}{{cite web |title=Since Leo High School's founding in 1926, Leo graduates have been leaders and innovators in all walks of life |url=https://leohighschool.org/distinguished-alumni/ |publisher=Leo High School |quote=TERRENCE A. DUFFY ’76 Executive Chairman and President, the CME Group. |access-date=March 3, 2022}} 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.{{cite news |last=Marksjarvis |first=Gail |date=May 26, 2017 |title=Early market loss taught CME Group CEO Terry Duffy discipline
|url=https://www.chicagotribune.com/business/ct-exec-q-a-terry-duffy-cme-group-0528-biz-20170524-story.html |work=Chicago Tribune |access-date=March 3, 2022}}
Duffy attended the University of Wisconsin-Whitewater from 1978 to 1980. While going to school, he worked nights at a bar called Chuck's in Lake Geneva, an affluent resort town popular with wealthy Chicagoans.{{cite news |last=Weizman |first=Hal |date=October 16, 2011 |title=From bar to floor to boardroom |url=https://www.ft.com/content/41708a32-f0c8-11e0-aec8-00144feab49a#axzz3mIXAYE14 |work=Financial Times |access-date=March 2, 2022}}{{cite news |last=Lambert |first=Emily |date=January 11, 2008 |title=Up From the Pits |url=https://www.forbes.com/forbes/2008/0128/064.html?sh=2ac9bb7f13e2 |work=Forbes |access-date=March 2, 2022}} 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.
Career
= Chicago Mercantile Exchange and TDA Trading=
Duffy began working as a runner at the Chicago Mercantile Exchange in 1980,{{cite news |last=Lambert |first=Emily |date=January 11, 2008 |title=Up From the Pits |url=https://www.forbes.com/forbes/2008/0128/064.html?sh=2ac9bb7f13e2 |work=Forbes |access-date=March 2, 2022}} and founded his own firm, TDA Trading, in 1981.{{cite web |date=May 6, 2014 |title=CME Group Executive Chairman Terrence A. Duffy |url=https://www.iit.edu/news/cme-group-executive-chairman-terrence-duffy |work=Illinois Tech |access-date=March 9, 2022}}{{cite book |date=2003 |title=Nominations of Terrence A. Duffy, Susanne T. Marshall, and Neil A.G. McPhie |url=https://books.google.com/books?id=YYFcpWHdankC&dq=Duffy+founded+TDA+Trading,+Inc.+and+served+as+President+of+TDA+Trading+from+1981+to+2002.&pg=PA6
|location=US |publisher=U.S. Government Printing Office |page=6 |isbn=9780160708886 |access-date=March 9, 2022}} 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. Shortly after he bought his membership and while working as a broker, he incurred a loss of $150,000 because of a misheard order.{{Cite news|url=https://www.economist.com/news/finance-and-economics/21577387-biggest-financial-exchange-you-have-never-heard-futures-capitalism|title=The futures of capitalism|newspaper=The Economist|date=May 11, 2013|access-date=March 2, 2022}} “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.{{cite news |last=Kapos |first=Shia |date=June 24, 2013 |title=CME's Terry Duffy on the trade that changed his life |url=https://www.chicagobusiness.com/article/20130622/ISSUE09/306229973/profile-terry-duffy-executive-chairman-and-president-of-cme-group |work=Crain's Chicago Business |publisher=Crain Communication |access-date=March 2, 2022}}
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. Duffy continued trading by day and tending bar by night to pay back the debt over the next three years.
In 1995 Duffy joined the CME's board,{{cite news |last=Lambert |first=Emily |date=January 11, 2008 |title=Up From the Pits |url=https://www.forbes.com/forbes/2008/0128/064.html?sh=2ac9bb7f13e2 |work=Forbes |access-date=March 2, 2022}} and in 1998 was elected vice chairman.{{cite news |date=December 21, 1998 |title=The Chicago Mercantile Exchange |work=Securities Week |publisher=The McGraw-Hill Companies, Inc. |quote=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. |via=Nexis}} Duffy pushed for the CME to embrace electronic trading during this period.{{cite news |last=Lambert |first=Emily |date=January 11, 2008 |title=Up From the Pits |url=https://www.forbes.com/forbes/2008/0128/064.html?sh=2ac9bb7f13e2 |work=Forbes |access-date=March 2, 2022 |quote=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.}}{{cite news |last=Fox |first=Loren |date=March 2007 |title=Today Chicago, Tomorrow… |url=https://www.institutionalinvestor.com/article/b150nxdb7621vv/today-chicago-tomorrow |work=Institutional Investor |access-date=March 9, 2022 |quote=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.}}
In April 2002, Duffy became chairman of the CME board and, in December 2002, CME became the first U.S. exchange to go public.{{cite news |date=June 10, 2002 |title=Parent of Chicago Mercantile Exchange plans dlrs 150 million IPO |work=Associated Press International |quote=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. |via=Nexis}}{{cite news |date=December 3, 2002 |last1=Weber |first1=Lara |last2=Sottardi |first2=Drew |title=Merc on verge of going public |work=Chicago Tribune |url=https://www.chicagotribune.com/news/ct-xpm-2002-12-04-0212050055-story.html |access-date=March 3, 2002| quote=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.}}
= CME Group =
On October 17, 2006, the Chicago Mercantile Exchange announced a merger with the Chicago Board of Trade in an $8 billion deal.{{cite news |last=Barrionuevo |first= Alexei |date=October 18, 2006 |title=2 Exchanges in Chicago Will Merge |url=https://www.nytimes.com/2006/10/18/business/18exchange.html |work=The New York Times |access-date=March 9, 2022}} The combined exchanges would be known as the CME Group, and would represent the world's largest market for financial derivatives contracts. Duffy and his counterpart at the Chicago Board of Trade, Charles Carey, negotiated the deal, along with other executives.{{cite news |last=Fox |first=Loren |date=March 2007 |title=Today Chicago, Tomorrow... |url=https://www.institutionalinvestor.com/article/b150nxdb7621vv/today-chicago-tomorrow |work=Institutional Investor |access-date=March 9, 2022}} Duffy served as chairman of the combined company,{{cite news |date=October 17, 2006 |title=CME to Buy CBOT for $8b |url=https://www.cio.com/article/263106/outsourcing-cme-to-buy-cbot-for-8b.html |work=CIO |publisher=IDG Communications |access-date=March 9, 2022}} and is credited with leading the CME Group's acquisition of the New York Mercantile Exchange in 2008.{{cite news |last=Shaffer |first=Erica |date=November 15, 2016 |title=Duffy to CEO of CME Group
|url=https://www.world-grain.com/articles/7344-duffy-to-ceo-of-cme-group |work=World Grain |publisher=Sosland Publishing |access-date=March 9, 2022}} He began to serve as executive chairman and president in 2012, and in November 2016 took on an expanded role as chief executive officer.
In 2018, Duffy led CME Group's acquisition of London-based NEX Group.{{cite news |last=Sozzi |first=Brian |date=March 29, 2018 |title=CME Group Agrees $5.5 Billion Merger With Britain's NEX |url=https://www.thestreet.com/markets/cme-group-agrees-5-5-billion-merger-with-britain-s-nex-14538684 |work=TheStreet |access-date=March 9, 2022 |quote=CME Group's (CME) long-time CEO Terry Duffy wasn't kidding when he told TheStreet back in December he was nearing an acquisition.}} 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.{{cite news |last1=Mickle |first1=Tripp |last2=Tilley |first2=Aaron |date=December 29, 2021 |title=Google and Tech Rivals Tap Cash Reserves to Realize Cloud Ambitions |url=https://www.wsj.com/articles/google-and-tech-rivals-tap-cash-reserves-to-realize-cloud-ambitions-11640773806 |work=The Wall Street Journal |access-date=March 9, 2022 |quote=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.}} In addition, Google invested $1 billion in CME Group.{{cite news |last=Miller |first=Ron |date=November 4, 2021 |title=Google invests $1B in CME Group as part of long-term Google Cloud deal |url=https://techcrunch.com/2021/11/04/google-clouds-1b-investment-in-cme-group-part-of-long-term-infrastructure-services-deal/ |work=TechCrunch |access-date=March 2, 2022}}
= Board service =
Duffy joined the CME board in 1995 and has served as chairman of the CME Group board since 2002.{{cite news |last=Lambert |first=Emily |date=January 11, 2008 |title=Up From the Pits |url=https://www.forbes.com/forbes/2008/0128/064.html?sh=2ac9bb7f13e2 |work=Forbes |access-date=March 2, 2022}}{{cite news |date=June 10, 2002 |title=Parent of Chicago Mercantile Exchange plans dlrs 150 million IPO |work=Associated Press International |quote=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. |via=Nexis}} 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.{{cite web |title=Wall Street 50 – 2009 |url=https://www.irishamerica.com/honoree/terrence-duffy-2/ |publisher=Irish America |access-date=March 3, 2022}}{{cite web |title=Terrence A Duffy Chairman/CEO, Cme Group Inc |url=https://www.bloomberg.com/profile/person/1777870 |publisher=Bloomberg |access-date=March 3, 2022}}
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.{{cite news |last=Marek |first=Lynne |date=October 31, 2011 |title=TRADING PLACES; CME's Duffy emerges as exchange's politicker-in-chief |url=https://www.chicagobusiness.com/article/20111029/ISSUE01/310299982/trading-places |work=Crain's Chicago Business |publisher=Crain Communication |access-date=March 2, 2022}}
= 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.{{Cite web |last=Landsman |first=Stephanie |title=CME Group CEO calls Bankman-Fried 'an absolute fraud,' says he saw trouble months before FTX collapse |url=https://www.cnbc.com/2022/11/23/absolute-fraud-cmes-terry-duffy-says-he-saw-trouble-before-ftx-collapse-.html |access-date=2023-03-09 |website=CNBC |language=en}}{{relevant inline|date=January 2025}}
Personal life
Duffy and his wife, Jenny, have twin sons.{{cite news |last=Kapos |first=Shia |date=June 24, 2013 |title=CME's Terry Duffy on the trade that changed his life |url=https://www.chicagobusiness.com/article/20130622/ISSUE09/306229973/profile-terry-duffy-executive-chairman-and-president-of-cme-group |work=Crain's Chicago Business |publisher=Crain Communication |access-date=March 2, 2022}}{{cite news |last=Chaparro |first=Frank |date=January 25, 2017 |title=The CEO of a giant Chicago company says big business has 'a moral obligation' to help struggling cities |url=https://www.businessinsider.com/terry-duffy-on-chicago-and-big-business-moral-obligation-2017-1 |work=Insider |access-date=March 2, 2022}}
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.{{cite web |title=Honorary Degree Recipients And Commencement Speakers |url=https://www.sxu.edu/commencement/honorary-degree.aspx |publisher=Saint Xavier University |access-date=March 3, 2022}}{{cite web |title=Wall Street 50 – 2009 |url=https://www.irishamerica.com/honoree/terrence-duffy-2/ |publisher=Irish America |access-date=March 3, 2022}}
References
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