Options Clearing Corp.
In 23 years with CME Group, the last eight as CEO before
retiring in 2012, Craig Donohue put his legal
background to work he has both a JD from John Marshall
Law School and a masters of law in financial services
regulation from IIT Chicago-Kent College of Law on the
companys 2002 IPO and $20 billion-plus in M&A deals.
He also spearheaded one of the most aggressive technological
transformations in the exchange industry, centered on the
now-24-year-old Globex platform. (Donohue ranked No. 2 in the
2011 Tech 50. His successor,
Phupinder Gill, is No. 4 this year.) Retirement did not
last long: CMEs Chicago neighbor Options Clearing Corp.
came calling, and in January 2014, Donohue took the helm as
executive chairman. Global regulators had designated OCC a
SIFMU (systemically important financial market utility) in
2012, and Donohue jumped on the opportunity to bring the
company organizationally and technologically up to speed.
Risk management and capital efficiency are more at the
forefront of our attention, Donohue, 54, explains. At
OCC, which clears an average 17 million options contracts every
day on 14 U.S. exchanges, we pay less attention to the
factory aspect and more to how resilient we are, given the
financial crisis in 2008, in terms of capital, liquidity,
margin coverage and clearing fund resources, so we can perform
the obligations we have to our clients. A new technology
team, led by chief information officer Luke Moranda, who joined
in March 2015 from JPMorgan Chase & Co.s treasury
services business, is charged with ensuring resiliency a
pillar of Donohues strategic plan. For OCC and its
clearing members, the business has become highly
capital-intensive, requiring $100 billion in margin collateral
and a $7 billion mutualized insurance pool as a backstop
against failures. Donohue has introduced data warehousing and
information analytics to reduce capital needs for
example, by identifying which options positions are driving up
costs. Risk analytics is the next frontier to support
clients on their trades and reducing costs, says Donohue.
The tech agenda includes looking at blockchain and distributed
ledger, which Donohue sees as potentially very
significant in the central counterparty clearing landscape over
the next ten to 15 years.
The 2016 Tech 50: Making Financial Services Faster, Cheaper,
Bigger for more.
The 2016 Tech 50
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