The month of May is American Jewish History Month, so for this entire month I will continue share the stories of important Jewish figures in American finance. Today, I will share the story of Leo Melamed who is a Holocaust survivor and the person who revolutionized the futures market.
Born in 1932 in Bialystok, Poland, Melamed and his family fled the Nazis during World War II, eventually settling in Chicago, thanks to a life-saving visa from Japanese diplomat Chiune Sugihara.
Melamed received his undergraduate degree from the University of Illinois and his law degree from John Marshall Law School. He became involved in futures trading by accident. While in law school, he was looking for a law clerk job and answered an ad from a firm looking for a "runner", thinking the firm, Merrill Lynch, Pierce, Fenner & Beane, with that many names could be nothing but an established law firm that would be looking for a clerk to "run" to court. Instead, he worked as a runner in the produce futures markets of the Chicago Mercantile Exchange while in law school and learned about the business. He was elected to the CME board in 1967.
For those who don’t know futures are a legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The item transacted is usually a commodity or financial instrument. Contracts are traded at futures exchanges, which act as a marketplace between buyers and sellers
In 1969, Melamed became Chairman of Chicago Mercantile Exchange, where he spearheaded the creation of the International Monetary Market (or IMM) in 1972, introducing currency futures—a groundbreaking innovation that transformed global finance.
Under his leadership, CME launched Treasury bill futures (in 1976), Eurodollar futures (in 1981), and stock index futures (in 1982), further solidifying its role in financial markets. In 1987, Melamed led the development of Globex, the world’s first electronic trading system, which revolutionized futures trading.
Beyond finance, Melamed has been an advisor to governments worldwide, helping shape financial regulations and market structures. He also played a key role in establishing the National Futures Association, ensuring ethical trading practices.
His contributions have earned him numerous accolades, including recognition as one of the most influential figures in 20th-century finance. His memoir, Escape to the Futures, details his journey from a Holocaust survivor to a financial innovator.