With Thursday’s board election looming at the Chicago Mercantile Exchange, many veteran members say the atmosphere is the most contentious in years.
The last time internal bickering bubbled over to a similar extent, the controversy revolved around an unlikely figure. In the early 1990s, a small-time currency trader almost single-handedly stirred up the exchange, then abruptly sold his seat after members voted down a referendum he supported.
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Douglas Bragan became a touchstone for member discontent, pushing forward a plan to slash the exchange budget and trading fees, while also trying to force Merc major-domo Leo Melamed to stand for election.
Both ideas have again become a source of angst at the Merc over the past year, and Bragan thinks he knows why.
Now working full time as owner-manager of the off-Loop Ivanhoe Theater, Bragan believes the Merc is paying the price for failing to groom young leaders over the last decade.
“For years, they discouraged young people from coming up,” Bragan said. “There should have been people groomed and brought along. But nobody wants to give up any power.”
Bragan sees a dim future unless the Merc raises up counterweights to its perennial leaders: Melamed and outgoing Chairman Jack Sandner. “Jack and Leo won’t be around (forever),” Bragan said. “Who’s going to run the place?”
It’s a question that could be answered in the coming week.
Heads up: The most intense politicking at the Merc could prove to be the three working days between Thursday’s election of 12 directors and the Jan. 21 organizational meeting, when the new board picks a chairman.
With term limits forcing incumbent Sandner out of the job, and no obvious successor emerging, just winning a seat on the board may not be enough. Those angling to become officers will need to tally the highest election vote totals, Merc veterans predict.
It’s a rare case where every vote could make a difference, even among the winners.
Execs’ futures: As futures trading firms consolidate amid declining profitability, futures executives are learning the value of a specialized skill: landing on their feet.
The latest to pull it off is Anthony McCormick, former president of now-defunct Harris Futures, who landed at Chicago’s Rand Financial Services earlier this month with a dozen ex-Harris colleagues. “It’s a good fit,” McCormick said.
The ex-Harris team will beef up Rand’s capabilities in Chicago’s financial futures markets.
Previously, agriculture markets accounted for about 70 percent of Rand’s business. Now, the duties of its 130 employees will be split about evenly between agriculture and financials, said Jeff Quinto, president of the 5-year-old institutional trading firm, which is owned by Trout Trading Fund.
Trout accounts for less than 20 percent of Rand’s business, Quinto said. Banks and brokers outside the United States, especially in Japan, make up more than 20 percent, and Quinto expects the proportion of non-U.S. accounts to grow.
So given the tough environment, is this a good time to expand? “There’s plenty of room for boutique players,” Quinto said.
Dellsher doings: Leo Melamed’s Sakura Dellsher Inc. on Friday announced several promotions.
Gerard J. Pannekoek, formerly senior vice president of corporate development, takes on the newly created post of executive vice president, branch office management and corporate development. Timothy J. Mulholland, former senior managing director of sales, becomes senior vice president, institutional trading, coordination of internal procedures and strategic planning, another new post.
Mary A. Siragusa becomes senior vice president of compliance, while Theresa C. Arana becomes senior vice president of finance and accounting.