Kenneth R. Leibler

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Kenneth R. Leibler
Born1949 (age 74–75)
NationalityAmerican
Alma materSyracuse University
SpouseMarcia Leibler[1]
Children2

Kenneth R. Leibler (born 1949)[2] is an American business executive who was a founding partner of the Boston Options Exchange.[3] He was previously chairman and chief executive officer of the Boston Stock Exchange, President and chief executive officer of Liberty Financial Companies[4] and President of the American Stock Exchange.[5] At 36 years old, he was the youngest president in American Stock Exchange history[6] and believed to be the youngest president of any major stock exchange.[7]

Prior to joining the American Stock Exchange in 1975, he founded the retail options division at Lehman Brothers and served as a director of their retail options business.[5][3] He serves as chairman of the Board of Trustees of Putnam Mutual Funds[8] and on the board of Eversource Energy.[9] He also served as Vice Chairman of the Beth Israel Deaconess Hospital in Boston and as Director of ISO New England, Ruder Finn, and the Investment Company Institute in Washington, DC.[10]

Education[edit]

Leibler graduated Phi Beta Kappa in economics in 1971 from Syracuse University.[11][12] He wrote his senior thesis on options trading.[13]

Career[edit]

Lehman Brothers[edit]

The Chicago Board Options Exchange (CBOE) began trading options in 1973.[14] That same year, Leibler joined Lehman Brothers where he managed the firm's retail options business.[5]

American Stock Exchange[edit]

After two years at Lehman Brothers, Leibler joined the American Stock Exchange (AMEX) in 1975 as one of the first employees in their options division.[3] Through subsequent promotions, he became Chief Financial Officer, Executive Vice President for Administration and Finance, and in 1986, President.[5]

Leibler served as President of the AMEX during the stock market crash of 1987 known as Black Monday.[15][16][12] Following this crash, changes to market functioning were implemented under Leibler's leadership, including circuit breakers.[17][18]

In 1989, Leibler wrote an article in The New York Times about a proposed financial instrument called an Equity Index Participation that the AMEX planned to introduce.[19] This was a tradeable instrument that would allow investors to buy and sell an interest in the entire S&P 500 much like an ETF. It was approved by the SEC, but the ruling was later overturned by the United States Court of Appeals for the Seventh Circuit in Illinois.[19]

Liberty Financial Companies[edit]

Liberty Financial Companies was a diversified asset management organization. Leibler joined as president and COO in 1990, and became CEO and led a public offering of the company in 1995.[4] During his tenure, the company acquired Colonial Group,[20] Newport Pacific Management,[21] Progress Investment Management Co.,[22] and Crabbe Huson Group.[23] He stepped down as CEO in 2000.[4]

Boston Options Exchange[edit]

Leibler served as chairman and CEO of the Boston Stock Exchange from 2001 to 2004.[24] In 2004, he helped found the Boston Options Exchange (BOX) and then served as its chairman until 2007.[25] While at the Boston Options Exchange, Leibler and his colleagues Thomas Peterffy and Luc Bertrand patented a price improvement processor for the electronic trading of options.[26] This new pricing mechanism introduced by BOX in 2004 resulted in option orders sent to a three-second auction where bidding took place in one-cent increments. This contrasted with the traditional pricing mechanism of "national best bid and offer" where bids were submitted in five- or ten-cent increments among all the exchanges and trades executed at the best price available.[25]

Patents[edit]

Price improvement processor for electronic trading of financial instruments, (2011).[26]

Awards[edit]

Leibler received the Ellis Island Medal of Honor in 1999.[27]

References[edit]

  1. ^ "Weddings/Celebrations Jessica Leibler and David Tuchmann". The New York Times. June 12, 2005.
  2. ^ "Leadership Team". Putnam Investments. Retrieved 2022-10-27.
  3. ^ a b c "Leibler returns to his roots". Institutional Investor. Retrieved 2022-10-12.
  4. ^ a b c Jr, Frederick P. Gabriel (2000-01-24). "CEO's departure fuels Liberty Financial's woes". InvestmentNews. Retrieved 2022-10-12.
  5. ^ a b c d Gilpin, Kenneth N.; Schmitt, Eric (1986-01-30). "Business People; Executive Chosen as Amex President". The New York Times. ISSN 0362-4331. Retrieved 2022-10-12.
  6. ^ Eichenwald, Kurt (1990-06-20). "Company News; President of American Exchange Resigns". The New York Times. ISSN 0362-4331. Retrieved 2022-10-12.
  7. ^ "American Stock Exchange Taps One Of Its Own To Be President". AP NEWS. Retrieved 2022-10-12.
  8. ^ "Kenneth Leibler Named Chair of the Putnam Funds". www.businesswire.com. 2018-07-02. Retrieved 2022-10-12.
  9. ^ "Board of Trustees". www.eversource.com. Retrieved 2022-10-12.
  10. ^ "The Jewish Graduate Student Initiative". www.thejgsi.org. Retrieved 2022-10-12.
  11. ^ "Business People; Amex Picks No. 3 Man; He'll Focus on Strategy In a restructuring of its top management, the American Stock Exchange promoted Kenneth R. Leibler to the new position of senior executive vice president of marketing, administration and finance". The New York Times. 1985-02-15. ISSN 0362-4331. Retrieved 2022-10-12.
  12. ^ a b Crudele, John (1988). "Black Monday Memories". Surface. 4 (2): 1–2.
  13. ^ "People to Watch". Fortune. July 9, 1984. p. 184.
  14. ^ Times, H. J. Maidenberg Special to The New York (1973-04-27). "Trading in Options Opens On New Chicago Board". The New York Times. ISSN 0362-4331. Retrieved 2022-10-12.
  15. ^ United States (1988). "Black Monday," the stock market crash of October 19, 1987: hearings before the Committee on Banking, Housing, and Urban Affairs, United States Senate, One Hundredth Congress, second session ... February 2, 3, 4, and 5, 1988. S. hrg. ;100-649. Washington: U.S. G.P.O. : For sale by the Supt. of Docs., U.S. G.P.O., Congressional Sales Office.
  16. ^ Leibler, Ken (1987-12-06). "Business Forum: At the Helm on 'Black Monday'; 'Why Dad Was in Such a Bad Mood'". The New York Times. ISSN 0362-4331. Retrieved 2022-10-12.
  17. ^ "Kenneth Leibler's letter to the Securities and Exchange Commission" (PDF). February 26, 1988.
  18. ^ Leibler, Kenneth R. (June 8, 1988). "Circuit Breakers A la Brady Treat Only the Symptom". The Wall Street Journal.
  19. ^ a b Leibler, Kenneth (1989-08-27). "Business Forum: Regulating Stocks and Future; Merge the Market Watchdogs". The New York Times. ISSN 0362-4331. Retrieved 2022-10-12.
  20. ^ "Liberty Financial, Colonial Group Plan Merger To Form $43 Billion Company". AP NEWS. Retrieved 2022-10-13.
  21. ^ "Liberty Buys Newport Pacific". Pensions & Investments. 2006-12-13. Retrieved 2022-10-13.
  22. ^ "Liberty Financial agreed to purchase Progress Investment Management, a..." Pensions & Investments. 2006-12-13. Retrieved 2022-10-13.
  23. ^ "Liberty Financial Cos. is acquiring Crabbe Huson Group Inc. for $147.5..." Pensions & Investments. 2006-12-13. Retrieved 2022-10-13.
  24. ^ "Boston Exchange names Curran as chairman". UPI. Retrieved 2022-10-14.
  25. ^ a b Grant, Jeremy (October 31, 2004). "New boy Box 'near break-even'". www.ft.com. Retrieved 2022-10-14.
  26. ^ a b US 7941364, Peterffy, Thomas; Leibler, Ken & Bertrand, Luc, "Price improvement processor for electronic trading of financial instruments", published 2011-05-10, assigned to Boston Options Exchange Group LLC 
  27. ^ "Congressional Record (Bound Edition), Volume 145 (1999), Part 10 - Ellis Island Medals of Honor Awards Ceremony". www.govinfo.gov. Retrieved 2022-10-12.
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