CHICAGO - The Chicago Mercantile Exchange has reelected its chairman by an overwhelming margin.
The exchange said chairman Jack Sandner racked up the highest vote total in the history of the exchange, winning reelection with 76% of the ballots cast.
Under the Merc's rules, Mr. Sandner automatically will serve another year as the exchange's chairman as he completes his current two-year term in that office.
Since one contest for a post on the Merc's board ended in a tie - between Larry Scott Fields, an independent floor trader, and William C. Muno, the incumbent and an independent floor broker - the outcome was determined by a coin toss. The Merc's rules stipulate such ties be resolved by lot.
Mr. Muno won the toss, returning him to a two-year term on the board of directors.
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WASHINGTON - The slowdown in the exotic derivatives market caused by highly publicized losses is likely to continue for some time, according to an executive at Republic National Bank of New York.
Robert Schwartz, an executive vice president at Republic, told a recent meeting of the National Association of Business Economists here that the "perceived slowdown will continue for some time."
He pointed out that the market for over-the-counter exotic derivatives and structured notes had been hurt by the recent losses reported by corporations and municipalities.
Mr. Schwartz said that, as a result, he foresees a decrease in the development of exotic derivative products.
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NEW YORK - Federal Reserve Governor John LaWare said onerous derivatives legislation would force the market overseas.
Speaking at a recent luncheon here, Mr. LaWare said new legislation is not needed to regulate the derivatives market. He noted that industry self- regulation in the form of proper disclosure and the appropriateness of advice given by sales people is more important.
The Fed governor said all that burdensome legislation would accomplish would be to export the market to Germany, Japan, and elsewhere.
