An Historic Moment
by Leo Melamed

Presented at the celebration launching the CFFEX
Shanghai, April 15, 2010

I am deeply honored to be here on this historic occasion.

In 1972, at the launch of the financial futures revolution, I was aware that the occasion was momentous. We were introducing a brand new idea in world of markets, an invention that would offer participants in finance the same ability to manage risk as their counterparts in agriculture had been doing for centuries. The innovation swiftly spread from currency futures to interest-rate futures to stock index futures. Over time, the idea was embraced by every center of finance in the world.

But as I stand here today, at the historic moment of the stock index launch in the People's Republic of China, I am humbled by what has occurred. Words fail me to describe the emotion I feel. Today's futures market launch of the "Hu-Shen 300" represents for me the impossible dream come true.

I realize of course that this historic moment would not have happened without the foresight of Chinese government leadership. These government visionaries as well as many other leaders in the private sector understood that in order to keep pace with China's economic growth, it was imperative that Chinese capital markets become more liquid and efficient. To do so, there was a need to develop financial futures. Today's futures market launch of the "Hu-Shen 300" represents a most significant step in the journey to fulfill Chinese destiny.

I also wish to congratulate the CSRC and the president of CFFEX, Yuchen Zhu, and the officials of the Shanghai Security Exchange, the Shenzhen Security Exchange, the Shanghai Futures Exchange, the Dalian Futures Exchange, and the Zhengzhou Futures Exchange for their determination to bring this day about. As an aside, I am very proud of the Chicago Mercantile Exchange's role as an advisor in this process. The CFFX will provide participants with a critical financial hedging tool with which to manage risk exposure in the Chinese stock market. Over time, it will prove, as did the CME's launch of the S&P 500 futures contract back in 1982, that this instrument of trade is an invaluable tool in the development of vibrant securities markets.

Twenty years after their launch at the IMM of the CME, another Nobel Laureate, economist Merton Miller, declared financial futures the greatest innovation of the previous two decades. Were Merton Miller alive today, he would no doubt pronounce the birth of CFFEX as a proud continuation of this heritage.

My best wishes for success.

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