Craig Donohue on market consolidation
From Leaders on Leadership: Craig Donohue · · Detroit PBS
“We recognized that these markets were going to consolidate, become more global, and as a technology company, we needed the size, scope, and scale advantages necessary to compete on an international stage.”
On , Craig Donohue, Chief Executive Officer, President & Director at Cboe Global Markets, spoke about market consolidation during Leaders on Leadership: Craig Donohue on Detroit PBS.
About Craig Donohue
In a 2015 interview, Craig Donohue discussed his leadership approach and the strategic direction of CME Group, where he served as CEO. He described derivatives markets as a mechanism for hedging and transferring risk, comparing them to insurance. Donohue stated that demutualization and becoming a public company unified stakeholders around shareholder value creation. He emphasized taking a long-term view, including continued investment during the recession, and pursuing growth through large-scale mergers and acquisitions that generate cost synergies. Donohue also noted that innovation in a technical, regulated environment is "an art not a science" and that calculated risk-taking, including occasional failure, is acceptable as long as lessons are learned. Donohue addressed regulatory and ethical topics, stating that preventing financial scandals requires ethical leadership and a conservative approach. He argued that derivatives are useful for risk transfer but that the regulatory framework for over-the-counter markets had not kept pace with their growth, unlike exchange-traded markets. He also said that CME Group has focused on its competitive advantages rather than diversifying for investors, who can seek their own portfolio diversification.