Donohue to replace McNulty at CME

The Chicago Mercantile Exchange (CME) announced that James McNulty, president and chief executive, will step down at the end of the year, only one year after taking the exchange public. Craig Donohue will take over as chief executive on January 1. Donohue will also fill the remainder of McNulty’s term as a CME board member, which runs until April 2005.

Donohue was made McNulty’s apparent successor last October when the CME established the “office of the CEO”, consisting of the two men. Donohue is currently chief administrative officer.

The CME did not comment on the reasons for McNulty’s leaving. The CME hired McNulty, a long-time derivatives market veteran, in early 2000 from Warburg Dillon Read, where he was co-head of the corporate analysis and structuring team. Prior to that he was a general partner with futures and options trading firm O’Connor and Associates.

McNulty is highly regarded for his role in the CME’s demutualisation and subsequent initial public offering. The exchange’s stock has more than doubled in value since the IPO in December of last year. However, his pay package was widely criticised by the exchange’s floor traders, many of whom also thought his drive to expand the CME’s electronic trading was too aggressive.