Summer C-Level Series: Terry Duffy, CME Group
What have been the major themes of your business so far this year?
The major themes of our business so far in 2014 have been focused on growing our core business and expanding the reach of our products. We continue to push into new markets and develop new solutions that help our customers reach their risk-management goals.
One major milestone so far this year was that we launched our London-based exchange, CME Europe, which enables us to better serve our global customer base in that region.
What has surprised you in 2014?
We recently had an all-time Dow record, yet investors continue to sit on the sidelines during one of the greatest equity rallies because of uncertainty around Fed policy and regulation.
Most economists believe the U.S. economy is poised for its best performance since the depths of the financial recession in 2008 and 2009. When QE ends later this year, the Fed will be free to consider when to raise the target federal funds rate. As this all plays out in the markets, the need for effective risk management will be greater than ever and that’s where CME Group’s markets come into play: risk management continues to be the hallmark of the markets.
What are your expectations for the duration of 2014?
While interest rates aren’t expected to move much until next year, we’ve had record open interest – an encouraging sign for things to come.
As QE ends and the Fed considers when to raise the target federal funds rate, it will be a good thing for the economy and for economic confidence.
In the meantime, we’ll focus on our strengths for the rest of the year of growing our global benchmark products and partnerships, providing comprehensive clearing solutions and enhancing our technology infrastructure.