On the surface, John Sievwright’s new job heading Merrill Lynch operations in Japan looks like a chance to board the Titanic just as it hits the iceberg.
After all, the Futures Industry Association chairman is moving to Tokyo from New York amid a crisis in Asian financial markets. Turmoil in South Korea easily could extend Japan’s economic malaise. And a government proposal floated over the weekend for a $115 billion bailout of Japan’s troubled banks might not be enough to do the job.
Yet the soft-spoken Sievwright, who will become a regional chief operating officer for Merrill Lynch, thinks the timing of his move is just right. Japan’s recent, surprising embrace of deregulation in the financial sector will give U.S. firms a golden chance to compete aggressively.
“There’s tremendous opportunity,” Sievwright said. “There’s so much change in their whole system.”
As a Merrill Lynch colleague said of Sievwright’s planned move: “He’s got nothing but upside to work with.”
Of course, Sievwright’s upside could have a downside in the United States. As FIA chairman, he has propelled the negotiations for common clearing in Chicago. Some believe his departure will undermine the effort to unify the trade-guarantee systems of Chicago’s futures exchanges.
For his part, Sievwright thinks common clearing will happen without him: “It’s got a tremendous level of support now.”
Deja vu? With Sievwright packing his bags for Tokyo, the futures trade group he leaves behind is casting about for a successor.
Sievwright took over as chairman in June, when Laurence Mollner stepped down in midterm as his trading firm was being acquired.
Now, Carr Futures has completed its purchase of Mollner’s Dean Witter unit, and industry sources say Mollner is in line to fill the three months remaining on the term. Mollner, who is president of Carr under CEO Didier Varlet, declined to comment Monday.
John Damgard, president of the trade group, said he likes the idea of Mollner returning: “It’s perfectly within the rules to put (him) back on the mound as the closer.”
The association is slated to elect a new chairman for a full term at its annual meeting in Boca Raton, Fla., in March.
Bandwagon: Sievwright’s not alone in viewing Japan as a land of opportunity. Leo Melamed of Chicago’s Sakura Dellsher said he’s planning to branch into Tokyo next year, either by opening a separate office or using the office of his firm’s Japanese parent.
More Top Picks Best Epoxy Floor Coating Kits
Melamed foresees a big market for managed-futures funds as Japan scraps regulations that prevent its citizens from investing abroad. “We’re within a year of seeing an explosion of business in Japan,” he predicted.
Sqeaker: Talk about a close one: Mark Duffy won a spot on the board of directors at the Chicago Board Options Exchange by just three votes.
Running in the Dec. 8 election by petition, Duffy defeated the slated candidate, Al Wilkinson. In a campaign letter, Duffy had promised to oppose “any attempt to dilute the value of your membership,” a reference to an ill-fated CBOE plan to raise cash by selling 15 new membership seats.
Duffy also distributed red key chains in the shape of the numeral one, urging members to make him their “No. 1 Choice.” In light of the vote tally, maybe Duffy should hand out key chains in the shape of his new lucky number–three.
———-
MORE ON THE INTERNET: Find out what’s happening inside Chicago’s business sectors at chicago.tribune.com/go/insider