William W. Hobert
Director at CME
Board
About William W. Hobert
Independent Class B-1 director at CME Group since 2018; age 61. Founder of WH Trading, LLC (1998), a proprietary options and futures market maker, and partner in Nirvana Brokerage Services LLC (CFTC-registered introducing broker) and Nirvana Technology Solutions (low-latency trading infrastructure). Prior roles include FX options market maker at Cooper‑Neff & Associates (1988–1994) and founder of Hobert Trading Inc. (1994). Serves on CME Group’s political action committee; core credentials span trading technology, risk management, operations, and industry advocacy with SEC/CFTC commissioners and Congressional committees.
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Cooper‑Neff & Associates | FX options market maker (floor/OTC) | 1988–1994 | Market-making experience across CME floors and OTC; foundational derivatives expertise |
| Hobert Trading Inc. | Founder | 1994–present | Derivatives trading entity; later member of WH Trading |
| WH Trading, LLC | Founder, owner; oversees technology, risk, operations, strategy | 1998–present | Led transition to electronic, automated trading; liquidity provision across asset classes |
External Roles
| Organization | Role | Scope |
|---|---|---|
| Nirvana Brokerage Services LLC | Partner | CFTC-registered introducing broker supporting trading community |
| Nirvana Technology Solutions | Partner | Chicago-based fintech providing low-latency trading infrastructure |
| CME Group Political Action Committee | Director | Government relations engagement on industry topics |
Board Governance
- Independence: CME’s board determined all current directors are independent except the CEO; Hobert is classified “Independent.” He is not a CFTC “public director.”
- Committees: Member, Clearing House Oversight Committee (CHOC). CHOC oversees clearing house risk program effectiveness, policies and frameworks, approvals of membership and significant process/system changes. Hobert is not the chair.
- Attendance: Board held six regular and one special meeting in 2024; each director attended more than 75% of combined board and committee meetings. Eight board-level committees held 52 meetings with average attendance of 99%.
- Executive sessions: Independent directors meet quarterly in executive session chaired by the Lead Independent Director.
Fixed Compensation (Director)
| Year | Fees Earned or Paid in Cash ($) | Notes |
|---|---|---|
| 2024 | 71,085 | Includes annual cash stipends, committee retainers, chair retainers, subsidiary board meeting fees, functional committee meeting fees; amounts may be deferred under Director Deferred Compensation Plan |
Additional program features:
- Director Deferred Compensation Plan available; returns solely based on selected market investments; no pension or health benefits for non‑executive directors.
Performance Compensation (Director Equity)
| Year | Stock Awards ($) | Grant Mechanics | Vesting | Pricing Reference |
|---|---|---|---|---|
| 2024 | 240,102 | Annual equity award under Director Stock Plan; Hobert elected to receive additional shares in lieu of cash stipend (driving award above baseline) | Not subject to vesting restrictions | Calculated using closing price $194.10 on June 25, 2024 |
| 2025 | 239,993 (grant) | Form 4 indicates grant under Director Stock Plan; transaction date June 25, 2025; price $273.03 per share | Not specified (director awards generally immediate per proxy) | $273.03 per share (per Form 4/aggregators) |
Director Stock Plan structure: Authorizes issuance of up to 725,000 Class A shares via non‑qualified options, restricted stock, and common stock; compensation committee recommends annual equity stipend. Awards >$145,187 reflect directors electing stock in lieu of cash.
Performance metrics: CME discloses no performance‑based metrics for director equity; director awards are time‑based and, for 2024, not subject to vesting restrictions (i.e., no TSR/financial hurdles apply to directors).
Other Directorships & Interlocks
| Entity | Relationship to CME | Exposure/Notes |
|---|---|---|
| WH Trading LLC (member firm) | Majority interest owned by Hobert; firm pays CME trading-related fees | Payments made indirectly via clearing firm exceeded $120,000 in 2024; fees at published schedules; transactions pre‑approved under related‑party policy; board concluded independence remains intact |
| Nirvana Brokerage Services LLC | Introducing broker | CFTC‑registered IB; industry interlock but no specific CME transaction disclosed |
| Nirvana Technology Solutions | Trading infrastructure provider | Industry adjacency; no specific CME transaction disclosed |
Expertise & Qualifications
- Derivatives trading and market structure; technology/automation leadership; risk management and operations (WH Trading).
- Government relations/public policy engagement (SEC/CFTC commissioners; House/Senate committees; leadership).
- Board contributes to CME’s attribute matrix areas including global financial services, innovation/strategy, leadership, governance, and technology/cyber as described collectively for directors.
Equity Ownership
| Security Class | Beneficially Owned | Direct vs. Indirect |
|---|---|---|
| Class A | 125,719 shares | 85,719 direct; 40,000 through a firm where he is majority shareholder |
| Class B‑1 | 2 shares | Held through firm |
| Class B‑2 | 6 shares | Held through firm |
| Class B‑3 | 7 shares | Held through firm |
- None of CME directors/officers beneficially own more than 1% of any class.
- Stock ownership guideline for non‑executive directors: 2× total annual retainer; for 2024, $480,000. All directors with ≥5 years of service satisfied the guideline at the 2024 review; Hobert’s tenure (since 2018) meets the 5‑year threshold.
- Hedging prohibited and pledging of Class A shares by directors/officers is restricted; CME discloses currently none of its board members or executive officers have pledged Class A shares.
Insider Trades (Recent)
| Date | Type | Security | Price | Amount/Value | Notes |
|---|---|---|---|---|---|
| 2025‑06‑25 | A (Grant) | Class A | $273.03/share | $239,993 grant value | Granted pursuant to CME Group Director Stock Plan; Form 4 filed June 26, 2025 |
Governance Assessment
- Committee effectiveness: CHOC membership aligns with Hobert’s deep clearing and trading expertise; CHOC’s remit over clearing risk frameworks, product approvals, and membership decisions is central to CME’s systemic responsibilities. Not chair, reducing single‑point concentration risk.
- Independence and attendance: Board determined independence; attendance thresholds met; committee attendance robust across CME’s board (99% average).
- Ownership alignment: Hobert’s election to receive additional stock in lieu of cash stipend (higher equity award) and substantial beneficial holdings support shareholder alignment; director guidelines (2× retainer) satisfied for 5+ year directors.
- Potential conflicts and red flags:
- RED FLAG – Related‑party exposure via majority‑owned member firm: Payments >$120,000 in 2024; CME reports fees are at published schedules, pre‑approved, and do not impair independence under board policy. Monitor ongoing amounts and any preferential arrangements.
- No pledging; hedging prohibited—favorable alignment signals.
- Shareholder confidence signals: CME’s enhanced governance disclosures, board refresh, and strong committee infrastructure augment investor confidence; say‑on‑pay support improved to 87% in 2024 after board engagement (broader context for governance culture).