News & Updates
Click Here to read Richard Sandor’s latest article from Barron’s, published on Saturday, 25 March, 2017.
Click Here to see the video by John Lothian News.
Richard Sandor has seen just about everything in his career as the “father of financial futures.” From creating the first interest rate futures contract to founding the Chicago Climate Exchange, he tells it all in his latest book, “How I Saw It: Analysis and Commentary on Environmental Finance”. He spoke with John Lothian News about just how far carbon markets have come since 1999.
“It’s amazing to me, where we came from in the last two decades and during the period of this book, from 1997 or 1999 to 2005,” Sandor said. “What became a theoretical construct became a reality today adopted around the world.”
While a US carbon market does not appear to be in the works, US states have picked up and started their own cap-and-trade carbon markets, largely based on the markets Sandor created. California and the northeast group of states called the Regional Greenhouse Gas Initiative have done well in Sandor’s eyes.
“By and large, the markets have worked,” he said. “Very peculiarly, people point to price often and not to emissions reductions. While in corn, when prices get high farmers get happy, consumers don’t. When prices get low, consumers and the public are very happy. This market has it all flipped around. Instead of looking at the size of the crop, we’re looking at the price of the commodity and judging it as not effective if the price is low, whereas we’d applaud it in the ag markets.”
CCX’s contracts, now integrated into the Intercontinental Exchange, make up one of the markets that is beating the big name commodity contracts.
“I think one of the biggest elephants in the room is that the open interest in US environmental markets is approaching 500,000 contracts,” he said. “Which means it’s bigger in open interest than gold and platinum combined.”
China has followed suit as well with a number of pilot carbon markets and plans for a national carbon market this year.
“I think it’s set to become the biggest carbon market in the world – China,” he said. “Twenty years ago, in the context of this book, you would have never thought that China would be miles ahead of the US in terms of implementing market-based solutions to environmental problems. It’s almost surreal.”
Click Here to read Richard Sandor’s latest article from South China Morning Post, published on Tuesday, 28 February, 2017.
University of Chicago Lecturer, Environmental Finance Expert and Father of Financial Futures Offers Comprehensive Analysis, Commentary from Critical Era
CHICAGO, Feb. 22, 2017 – The latest book by Dr. Richard Sandor, renowned financial innovator, environmental finance expert and University of Chicago Lecturer, is now available in the United States. “How I Saw It: Analysis and Commentary on Environmental Finance” takes the reader on a journey from 1999 to 2005 – a critical time period in the formation of market structures to address global environmental challenges.
The book compiles monthly columns Sandor wrote in those years for Environmental Finance magazine, including the lead-up to his creation of the Chicago Climate Exchange and its early years of trading, along with the launch of the European Climate Exchange. Sandor’s innovations prompted TIME Magazine to name him a “Hero of the Planet” in 2002, and five years later one of the “Heroes of the Environment” for his work as the “Father of Carbon Trading.” Taken together, Sandor’s “How I See It” columns form a comprehensive historical analysis and commentary on environmental finance in the years following the Kyoto Protocol of 1997.
In his columns, Sandor made a variety of predictions that came true, including his belief that it would be up to the states, regions and free markets – rather than the federal government or a global initiative – to lead the efforts in reducing carbon emissions.
Sandor said: “I have always had a passion for financial innovation, but I also recognize as an academic that you have to educate continuously if innovation is to succeed. I set out 18 years ago to do just that with these columns, and I hope that the book will bring a new perspective on the era. I continue to believe wholeheartedly that markets, if properly designed and regulated, can play a critical role in solving environmental issues.”
“How I Saw It” is available in hard cover or as an ebook from the publisher, World Scientific Publishing Co., at http://www.worldscientific.com/worldscibooks/10.1142/10329.
This is Sandor’s fourth book. Previous works include “Sustainable Investing and Environmental Markets: Opportunities in a New Asset Class” and “Good Derivatives: A Story of Financial and Environmental Innovation” – both of which have been translated and published in Chinese by People’s Oriental Press. Sandor is also the lead author of “Environmental Markets: A New Asset Class,” published by the CFA Institute.
About Dr. Richard Sandor
Richard L. Sandor, Ph.D., is Chairman and CEO of the American Financial Exchange, a new electronic marketplace for small and mid-sized banks to lend and borrow short-term funds. He is also Chairman and CEO of Environmental Financial Products LLC, which specializes in inventing,
designing and developing new financial markets. Established in 1998, EFP was the predecessor company and incubator to the Chicago Climate Exchange (CCX), the European Climate Exchange (ECX), the Chicago Climate Futures Exchange (CCFE) and the Tianjin Climate Exchange (TCX). Sandor is the Aaron Director Lecturer in Law and Economics at the University of Chicago Law School and a Visiting Fellow with the Smith School of Enterprise and the Environment at Oxford University. He was honored by the City of Chicago for his universal recognition as the “father of financial futures.”
Ellen G. Resnick
Crystal Clear Communications