The Architects of Index Funds Receive CME Group's 2017 Melamed-Arditti Innovation Award

The CME Group Center for Innovation is pleased to present Jack Bogle and Mac McQuown with the 2017 Melamed-Arditti Innovation Award for their historic contributions to finance and investing. The award honors an individual or group whose innovative ideas or services have created significant change in the world’s markets, commerce and trade.

When they pioneered index funds in the 1970s, Bogle and McQuown sought a better way to track market performance and manage money long-term. In the process, they revolutionized investment strategy forever. Today, index funds, a form of passive management, account for nearly 30% of all U.S. investments.


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John C. BogleJohn C. Bogle
Founder a Former Chairman
Vanguard Group

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.

In 2004, TIME magazine named Bogle among its “100 Most Influential People in the World,” and Institutional Investor presented him with its lifetime achievement award. In 1999, Fortune designated him as one of the investment industry’s four giants of the 20th century. In the same year, he received the Woodrow Wilson Award from Princeton University for distinguished achievement in “the nation’s service.” In 1997, he was named one of the “financial leaders of the 20th century” in Leadership in Financial Services.

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. In 2000, he was named by the Commonwealth’s Chamber of Commerce as Pennsylvania’s business leader of the year.

John A. McQuownJohn A. McQuown

John “Mac” 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

The CME Group Melamed-Arditti Innovation Award is the signature program of the CME Group Center for Innovation. The award honors an individual or group of individuals 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.

CME Group named this award to honor Leo Melamed for his revolutionary achievements in introducing financial futures instruments to futures markets in 1972, and Fred Arditti, whose achievements in the 1980s developing CME's eurodollar interest rate and weather futures significantly advanced the management of risk in the futures industry. These innovations were instrumental in helping CME Group become the world’s leading derivatives marketplace.

MelamedLeo Melamed is recognized as the founder of financial futures. As Chairman of Chicago Mercantile Exchange (CME), he led the exchange's launch of currency futures with the creation of the International Monetary Market (IMM) in 1972—the first futures market for financial instruments. The introduction of financial futures paved the way for CME's launch of futures contracts on U.S. Treasury Bills, Eurodollars, and stock indexes in the decade that followed. In 1986, Melamed conceptualized CME’s Globex system, the first electronic trading platform for futures and options, and was instrumental in its launch in 1992. Currently Chairman Emeritus of CME Group and Chairman of Strategic Steering, Melamed continues his leadership role to help CME Group advance the world economy.

ArdittiFred Arditti developed futures contracts that transformed how businesses and individuals manage risk. Most notably, in 1981 he architected CME Eurodollar futures, the world's most actively traded futures contract today. Later, he was instrumental in strengthening in light of intensive competition in the new century from domestic and international markets. It was during this time that he originated weather futures. After his time at CME, he taught courses in futures and options while serving as a professor of finance at DePaul University in Chicago, as chairman of the University of Florida's Economics Department, and as a visiting professor at several institutions. His book “Derivatives” is the definitive textbook on the subject.

2016 – Tim Berners-Lee
Inventor of the World Wide Web

2014 – Ben Bernanke
Chairman, The Federal Reserve System (2006-2014)

2013 – Sal Kahn
Founder, Kahn Academy

2012 — Jimmy Wales
Co-Founder, Wikipedia

2011 — Robert Merton
Nobel Prize-Winning Economist and School of Management Distinguished Professor of Finance, MIT

2011 — Myron Scholes
Nobel Laureate and Frank E. Buck Professor of Finance, Emeritus, Stanford University

2010 — David A. Ferrucci
Department Group Manager, Semantic Analysis & Integration, IBM

2009 — Harry Markowitz
Nobel Prize-Winning Economist

2008 — Michael Bloomberg
Mayor, City of New York
Founder, Bloomberg LP

2007 — Eugene Fama
Robert R. McCormick Distinguished Service Professor of Finance, University of Chicago

2006 — Leo Melamed
Founder of Financial Futures and Chairman Emeritus, CME Group

2005 — William Sharpe
Nobel Prize Winning Economist and STANCO 25 Professor of Finance, Emeritus Graduate School of Business, Stanford University

Historical Note

In 2013, the CMAC unanimously recommended that the award be renamed from the CME Group Fred Arditti Innovation Award to the CME Group Melamed-Arditti Innovation Awardin recognition of Leo Melamed's revolutionary innovation of introducing futures in financial instruments in 1972. Melamed's contributions enabled the creation of effective and efficient global risk management tools through futures markets. These innovations have been copied by financial centers around the world.

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