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CME Group's former chief in talks to become OCC chairman -source
07/31/2013 Email this story  |  Printable Version

By John McCrank and Ann Saphir and Tom Polansek

July 31 (Reuters) - Craig Donohue, former chief executive officer for CME Group Inc, is in talks to become executive chairman of OCC, the world's largest clearing organization for options, a source with direct knowledge of the matter said on Wednesday.

The move would put Donohue back on top of a Chicago-based financial firm after he resigned from CME last year following 23 years with the world's largest futures exchange operator, including eight years as CEO.

Donohue did not immediately respond to requests for comment. An OCC spokesman said the company is searching for a chairman and declined to comment on Donohue.

OCC, formerly known as Options Clearing Corp., has nearly 120 clearing members that include the biggest U.S. broker-dealers, futures commission merchants and non-U.S. securities firms.

The company on Monday said Chairman and CEO Wayne Luthringshausen will retire at the end of the year and it will separate his roles. Michael Cahill, OCC's president, chief operating officer and treasurer, will become the next CEO, according to the company.

Cahill will report to the executive chairman and be responsible for day-to-day operations. The chairman will be responsible for "control functions of OCC, including enterprise risk management, internal audit and compliance, as well as for external affairs," according to the company.

Bloomberg first reported on OCC's negotiations with Donohue on Wednesday.

Under his retirement agreement with CME, Donohue is barred from competing with the company until the end of the year. CME paid Donohue $6.1 million in 2012, making him the company's highest-paid executive even though he held the CEO post for only the first four months of the year, according to a regulatory filing.

As chief of CME, Donohue had little interaction with market regulators at the Securities and Exchange Commission, which is OCC's main regulator. CME's main regulator is the Commodity Futures Trading Commission.

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