In Praise of For Crying Out Loud
"Endowed with strong parents and a bit of luck, Leo Melamed has made a remarkable escape from Nazi occupied Poland to building one of the pinnacles of global finance. Over four decades and more, he was the leading force in bringing his beloved 'Merc' from obscure trading pits for butter and eggs, and pork bellies to a model of electronic efficiency, handling billions of financial contracts, almost instantaneously with certainty of execution. Leo's pride in the Merc's safeguards against risk are justified by its sustained market performance in the midst of the financial crisis. For Crying Out Loud is not only a fascinating human story, but a remarkable tale of spurring innovation within a framework of prudence."
—Paul A. Volcker
"Leo Melamed has written an adventure story worthy of Hemingway. It's also a spy thriller and historic chronicle. It is the defining account of modern change that comes to an industry as old as Bedouins trading sheep on a dusty rock. Seen from the ultimate insider, we glimpse a world unseen and unknown to most of us. It is a very important work that could become a business school bible."
—Bill Kurtis, Kurtis Productions, Ltd.
"Leo Melamed provides a brilliant description and analysis of the history and evolution of Globex, the CME's electronic trading platform that transformed the way futures are traded around the world. ¿He combines political intrigue, cooperative collations, tradeoffs between personal and combined wealth incentives, and innovative ideas necessary to change the course of history of the CME. With myriad possible outcomes along the way, his story reads at times like a wondrous mystery novel. Congratulations on a marvelous book."
—Myron S. Scholes, Frank E. Buck Professor of Finance, Emeritus, Stanford University
"As a seminal figure in the derivatives industry, Leo Melamed has been a driving force in the global expansion of CME Group and futures trading. This book ably recounts the struggles and triumphs of his career, tracing its trajectory over half a century of innovation. His contribution to the effective working of financial markets cannot be overstated, and the positive impact of his ideas continues to be felt. It has been a privilege to know and work with him."
—Terrence A. Duffy, Executive Chairman, CME Group Inc.
"Melamed's book is a fascinating history of financial innovation surrounding the futures exchanges. It reveals the complex barriers to innovation, obstacles an outsider would never imagine, and shows how a spirit of flexibility, patience, and entrepreneurship can overcome them. It is also a testimony to the power of self-regulation, worth understanding at this time of calls for massive increases in government regulation of our financial markets."
—Robert Shiller, Arthur M. Okun Professor of Economics, Yale University, and Chief Economist, MacroMarkets LLC
"Leo Melamed takes us inside the boardroom to understand the politics of running the Chicago Mercantile Exchange in the context of its successful transformation from open outcry to round-the-clock electronic trading, the merger with the Chicago Board of Trade, and the transformation to a publicly traded company."
—Michael H. Moskow, Vice Chairman and Senior Fellow on the Global Economy, the Chicago Council on Global Affairs, and former president, Federal Reserve Bank of Chicago
"For Crying Out Loud is an historical account of the evolution from trading floor to electronic trading that derives its color and detail as a personal diary of Leo Melamed, who, along with his peer pioneers, guided the financial services industry through colossal changes over several decades. No one was closer to the succession of events that shifted global capital from trading pits to computer bits than Leo."
—Russell R. Wasendorf, Sr., Chairman and Chief Executive Officer, Peregrine Financial Group, Inc.
Reviews
"Focuses on the dramatic transformation of trading that occurred during the 10-year period spanning 1996 to 2006, when, by and large, the modern futures exchange was born. . . Particularly enjoyable are the colorful trading stories from Melamed's many decades at the exchange, such as the night of the 1987 stock market crash when one of the exchange's largest players had an immense margin call, and Melamed himself was forced to call the firm's chief executive to demand payment. "We are the Chicago Mercantile Exchange," Melamed recalls saying on that 2 a.m. call. "And you owe us a billion dollars" . . . In an industry full of colorful characters and inspiring stories, Leo Melamed stands out. His latest book is a satisfying read for traders, innovators or young minds in search of their own American dream." (Smartmoney.com)
"Chicago's success in the financial markets has gotten short shrift. That's too bad, because it's a great story. . . Leo Melamed has been at the heart of the tale for more than 40 years . . " (The Wall Street Journal)
"After reading the book For Crying Out Loud: From Open Outcry to the Electronic Screen, one feels like he or she has received a personal tour of the Chicago Mercantile Exchange from the founder of financial futures himself, Leo Melamed. . . [the book] leaves readers with a feeling that they better understand the dynamics and values of the exchange and its members. And who better to have at your side on this historical journey than the man who stood at the helm, guiding the exchange every step of the way?" (SFO magazine)
Press release
November 17, 2009
For Crying Out Loud
During the current unprecedented global meltdown when Wall Street went monstrously wrong, the Chicago Mercantile Exchange (the Merc), now CME Group, Inc is the poster child for what went right. How did an organization that was originally synonymous with the “House that Pork Bellies Built” transform into the “House that Innovation Built”? The answer is found in the rich history of the Merc and the people who continuously defied the status quo to revolutionize the industry.
According to Leo Melamed, globally recognized founder of financial futures and author of the FOR CRYING OUT LOUD (Wiley, August 2009, ISBN: 978-0-470-22943-9, $39.95), “Human history is replete with new ideas, postulates, and inventions that were so revolutionary or monumental that their advocates were vehemently rebuked and the ideas were rejected by the establishment. Milton Friedman defined it as Tyranny of the Status Quo...adherents of the status quo have sought to prevent advancement using whatever means necessary. The futures markets have been no different.”
Leo Melamed’s book is an informal history of the CME Group from 1996-2006; a decade filled with unparalleled accomplishments further establishing CME as the colossal global powerhouse of futures and options. As one of the great innovators in financial markets and the guiding hand of CME for the last 45 years, Melamed provides readers with an inside look at a major American enterprise throughout this fascinating, make-or-break period.
FOR CRYING OUT LOUD reveals the battles, personalities, and strategies that transformed the futures markets from the open outcry birth to the electronic future. Using relevant documents, exhibits, essays, and references to illustrate the story behind CME, Melamed identifies the trends, technology, and products that have shaped the world of futures and options, as well as how financial futures have allowed investors to manage generalized risks to both reduce exposure and capture increased profits within a market structure. The book also includes Melamed’s predictions for what this dynamic and demanding industry may look like in the years ahead.
