News Release

CME Group Announces Jack Bogle and Mac McQuown as the 2017 Melamed-Arditti Innovation Award Recipients

Tue Nov 07 2017

CHICAGO, Nov. 7, 2017 /PRNewswire/ -- CME Group's Center for Innovation today announced that John C. "Jack" Bogle, Founder of The Vanguard Group, Inc., and John "Mac" McQuown, Co-founder/Director and Principal of Diversified Credit Investments, are the 13th recipients of the CME Group Melamed-Arditti Innovation Award. CME Group will present the award at the 10th annual Global Financial Leadership Conference in Naples, Fla., on Tuesday, Nov. 14.

The award recognizes Bogle and McQuown for revolutionizing investment strategy forever in pioneering index funds in the 1970s. Seeking a better way to track market performance and manage money long term, they developed a new a form of passive portfolio management. Today, index funds account for nearly 30 percent of all U.S. investments.

The CME Group Melamed-Arditti Innovation Award strives to celebrate innovation that, through practical application, has had a positive impact on the economic well-being of individuals, industries or nations. This award honors an individual or group whose innovative ideas, products or services have created significant change to markets, commerce or trade.

"Jack Bogle and Mac McQuown's innovative contributions to the global financial industry cannot be overstated," said CME Group's Chairman Emeritus and co-founder of the Melamed-Arditti Innovation Award, Leo Melamed. "Index funds, an investment tool so ubiquitous today that many take it for granted, helped make investing accessible to a wide range of investors, helping them to build wealth and ultimately grow the U.S. economy."

"In 1975, I founded the world's first index mutual fund, first hinted at in my 1951 college thesis," said Bogle. "In two of my books—1994 and 2007—both best sellers, I sang the praises of index funds. Today, investing is dominated by the index revolution. It's a thrill to be recognized by CME's Center for Innovation for my pioneering work in this burgeoning field."

"I'm deeply honored to be selected, along with my long-time colleague Jack Bogle, for the Melamed-Arditti Award," said McQuown. "My immense gratitude goes to the individuals who were so instrumental in creating the first index funds at Wells Fargo, including six academics who today have Nobel prizes, two CEOs and one Chairman of Wells who paid the way, plus our talented internal staff, together with several lawyers who also worked so diligently to pave the way. The achievement is a study in extraordinary collaboration."

John Bogle is founder of The Vanguard Group, Inc., and president of the Bogle Financial Markets Research Center. He created Vanguard in 1974, serving as chairman and chief executive officer until 1996 and senior chairman until 2000. Vanguard is the largest mutual fund organization in the world. Headquartered in Malvern, Pennsylvania, Vanguard comprises approximately 170 mutual funds with current assets totaling more than $4 trillion. Vanguard 500 Index Fund, the largest fund in the group, was founded by Bogle in 1975. It was the first index mutual fund.

Bogle served as chairman of the board of governors of the Investment Company Institute from 1969–1970, and as a member of the board from 1969–1974. In 1997, he was appointed by then-U.S. Securities and Exchange Commission Chairman Arthur Levitt to serve on the Independence Standards Board.

McQuown is a co-founder/director and principal of Diversified Credit Investments, a firm that manages portfolios of corporate credit risk for institutional investors. McQuown was a co-founder and Chairman of KMV, a corporate credit risk analytics firm acquired by Moody's Investors Services in 2002. He co-founded and remains a director of Dimensional Fund Advisors, an equity funds investment firm. Dimensional continues to pioneer the development of scientifically based investment strategies.  With global investing as well as distribution, Dimensional manages more than $200 billion, predominately in equities for both individuals and institutions.

Previously, he co-founded Diversified Corporate Loans, Chalone Wine Group, and Loan Performance. He began his business career in the corporate finance department of Smith, Barney & Co., New York. Before becoming an entrepreneur, McQuown was the director of management sciences, Wells Fargo Bank, where he was responsible for the effort that resulted in the world's first index equity funds.

The CME Group Melamed-Arditti Innovation Award recipient, formerly known as the Fred Arditti Innovation Award, is chosen annually by members of the Competitive Markets Advisory Council (CMAC). The award's namesakes are Leo Melamed, in recognition of his revolutionary achievements in introducing financial futures instruments to the world in 1972; and former CME Group Chief Economist Fred Arditti, who was instrumental in developing the IMM index upon which CME Group's Eurodollar futures contract, the world's most actively traded futures contract, was based. Past recipients of the award can be found on the CME Group Center for Innovation website. 

As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk.  CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest ratesequity indexesforeign exchangeenergyagricultural products and metals.  Around the world, CME Group brings buyers and sellers together through its CME Globex® electronic trading platform.  CME Group also operates one of the world's leading central counterparty clearing providers through CME Clearing, which offer clearing and settlement services across asset classes for exchange-traded and over-the-counter derivatives.  CME Group's products and services ensure that businesses around the world can effectively manage risk and achieve growth.

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