Harry Markowitz has shaped how the world looks at risk and how investors approach equity markets. His groundbreaking 1952 Journal of Finance essay, "Portfolio Selection," laid out his ideas for what is today known as modern portfolio theory, which quantifies the benefits of diversification. The theory posits that it is not enough to look at the expected risk and return of one particular stock. Rather by investing in more than one stock, an investor can reap the benefits of diversification - chief among them, a reduction in the riskiness of a portfolio. Today modern portfolio theory is a standard topic in college courses and is widely used by institutional investors for asset allocation, risk control and attribution analysis.

It is in large part for these time-tested concepts that Markowitz has been selected as the recipient of the 2009 CME Group Fred Arditti Innovation Award.

CFI will present Markowitz with the award as part of CME Group’s Global Financial Leadership Conference in November.

Read Markowitz’s official bio
Read CME Group Press Release
See the advertisement featuring Markowtiz
View the GFLC agenda

CME Group Fred Arditti Innovation Award – Innovation in Action
Innovation has always been the soul of CME, and it remains so after its merger with the Chicago Board of Trade to form the CME Group. Throughout our history, we have continually embraced change and fostered an entrepreneurial spirit that has enabled both our exchange as well as the futures industry to grow and prosper. To a greater extent, the power of innovation has proven its ability to transform business, influence the direction of civilization and alter its reality for the better.

The CME Group Center for Innovation
The Fred Arditti Innovation Award is the signature program of the CME Group Center for Innovation (CFI). The CFI was founded in 2003, under the direction of Leo Melamed, CME Group chairman emeritus, to create and sponsor thought-provoking original programming that identifies, showcases and fosters examples of significant innovation and creative thinking across multiple industries. The annual award honors an individual whose innovative ideas, products or services have created significant change to markets, commerce or trade. The award strives to celebrate innovation in action, not only the creative idea, but also the impact that practical application of the idea has made on improving the economic well being of individuals, an industry or a nation. Find out more about CFI programs and events.

History of the Fred Arditti Innovation Award
CME Group established this most prestigious award to honor the lifetime achievements of Fred D. Arditti, a longtime associate of CME Group. As chief economist of the CME from 1980 to 1982, Arditti pioneered the IMM Index upon which the CME Eurodollar futures contract was founded. The Eurodollar contract was the first futures instrument based on "cash settlement", a seminal event in the history of futures markets. It grew to become the most actively traded futures contract in the world. During his subsequent tenure at CME Group, Arditti led the Strategic Planning, Marketing and Research Divisions, as well as the development of the CME weather contract. A tenured professor at Chicago's DePaul University, Arditti authored the book "Derivatives", which became among the most authoritative publications on this subject at U.S. universities.  His legacy of innovation personifies the very spirit of CME Group.

Award Selection Committee-CMAC
The annual recipient of the Fred Arditti Innovation Award is selected by the Competitive Markets Advisory Council (CMAC), a group of preeminent financial experts including Nobel Prize winners.  Members of CMAC serve as a “CME think tank” to  provide advice and ideas to CME Group Board of Directors in the form of policy analyses, position papers and other strategic recommendations on significant market issues.