Panelists' Biographies, Securities Lending and Short Sale Roundtable

Panelists' BiographiesSecurities Lending and Short Sale Roundtable
September 29, 2009

PANEL ONE — Overview of Securities Lending: Participants; Process; Benefits and Pitfalls

Jerry Davis, Chairman of the Board of Trustees, City of New Orleans Employees’ Retirement System
Statement
Commander Jerry D. Davis is the Employee Representative on the Board of Trustees for the New Orleans Employees’ Retirement System. He was first elected to this five-member board in 1986 and was re-elected for his eighth term effective July 1, 2008. He was elected Chairman of the Board in 1994, after serving as Chairman of the Investment Committee for seven years, during which time the Fund progressed from a fixed-income-only allocation to a balanced mix of asset classes. During his unprecedented tenure, the Fund has grown from $94 million to $420 million, while providing generous pensions and allowing for the lowest employer cost ratio in the state. In his CEO role, he manages relationships with local government officials, 47 investment firms, four law firms, the Board’s consultants, actuary, and the state auditor.
Jerry pursued a dual career in military service and civilian government for over forty years before retiring from the Coast Guard in 2002. During that career he alternated between reserve and active service, being called to active duty six times. He was selected three times to command Coast Guard forces, and served for several years on the staff of the Commandant and/or the District Commander. He earned eleven decorations and was promoted through thirteen ranks, finally serving as a port operations commander during Operation Desert Storm.
He subsequently retired from City of New Orleans employment in May of 2006, where his last post was Personnel Administrator, responsible for all training and performance evaluation for the City’s 8,000-member workforce. He continues, as an unpaid volunteer, in two roles: in addition to his trustee responsibility, he is serving a six-year term as the Employee Representative on the Civil Service Commission, appointed by the City Council in 2005. His role there is both legislative and judicial, with responsibility for adopting changes to Civil Service Law as well as adjudicating employee appeals of wrongful discipline.
A 1970 graduate of Tulane University, Jerry has addressed over 200 audiences in eleven countries, on issues as varied as fund management, securities litigation and military logistics.

David Downey, Chief Executive Officer, OneChicago
Statement
David G. Downey serves as Chief Executive Officer of OneChicago, the Securities Futures exchange in the US.
Mr. Downey began his career in the securities and futures industry in 1983 on the American Stock Exchange in New York. In 1985 he joined Timber Hill Inc.,(THI) a firm specializing in the business of market-making on the floors of various stock, future and derivative exchanges around the world. After moving to Chicago in 1985 he began trading as a member of the CBOE and over the years held memberships at the CBOT and the CME. In 1991 he assumed the title of Vice President of US floor trading Operations for Timber Hill and was instrumental in the spread of electronic tools for traders on the various exchange floors.
In 1995, Mr. Downey turned his attention to the development of Interactive Brokers (IB) where he served as Executive Vice President. IB provides direct access (”on line”) trade execution and clearing services to institutional and professional traders for a wide variety of electronically traded products including options, futures, stocks, forex and bonds worldwide.
Mr. Downey is a 1982 graduate of Boston College where he earned Bachelor of Arts Degrees in Economics and Political Science.

Irving J. Klubeck, Managing Director, Pershing LLC
Statement
Irving Klubeck is a Managing Director for Pershing LLC, where he is a member of Customer Processing and Services, and is responsible for Securities Lending Operations and Global Clearance and Settlements. Mr. Klubeck re-joined Pershing in 2004 after two years with State Street Corporation leading their effort to provide hedge fund operations to their alternative investing clients. Mr. Klubeck began his career with Pershing in 1978 and has worked in the firm’s Treasurers, Securities Lending (Sales and Operations), and International Operations departments. Mr. Klubeck is currently the President of the Securities Industry and Financial Markets Association’s (SIFMA) Securities Lending Division and is an active participant in numerous industry task forces and working groups. Mr. Klubeck earned a Bachelor of Business Administration degree in Finance from Pace University and is also a graduate of the Securities Industry Institute, sponsored by the SIFMA at The Wharton School. He holds NASD® Series 7, 24, and 63 licenses.

William F. Pridmore, President, William F. Pridmore, Ltd.
Statement
Bill has over 30 years of diversified experience as an independent consultant and senior manager in Institutional Trust and Commercial Banking. This includes extensive experience in all aspects of Global Securities Lending, Global Custody, Master Trust Securities Operations and Securities Finance.
Bill currently works as an independent consultant out of an office in the northern suburbs of Chicago. He provides advice to large institutional investors on their participation in the securities lending and short-term investment markets. His consulting clients have included large public and private pension funds, multinational insurance companies and mutual fund complexes.
For the potential lender of securities, there is no shortage of highly knowledgeable and experienced people willing to provide advice about securities lending. But this advice is usually from the perspective of a vendor selling their product. Often the lender has a difficult time determining when their interests may not be aligned with the lending service vendor. Bill helps the institutional investor bridge that knowledge gap and provides an unbiased perspective.
Over his career, Bill has been actively involved in the formation of international organizations that promote sound securities lending practices. He has frequently been asked to speak on the topic of Securities Lending, most recently at the 2009 IMN Securities Lending and Repo Conferences held in Arizona and New York. In 1992, Bill assisted in the organization and acted as Chairman of the first RMA/ISLA joint International Securities Lending Conference held in Scotland.
Bill received a M.B.A. with a Concentration in Finance from the University of Chicago in 1981. He received his B.A. in Economics from Georgetown University in 1977.

Adam V. Reed, Ph.D., Julian Price Scholar in Finance and Associate Professor of Finance at the UNC Kenan-Flagler Business School
Statement
Professor Reed is the Julian Price Associate Professor of Finance at The University of North Carolina’s Kenan-Flagler Business School. Professor Reed’s research focuses broadly on short selling, equity lending, capital markets and mutual funds. The research asks how institutions affect the traditional view of markets and asset prices, and it has helped uncover important features of financial markets that have had direct, significant impact on academics, practitioners and regulators. The research provides clarity on the following key questions. How does short selling affect market efficiency? How are prices in options markets related to short selling costs? And, how does the presence of search costs affect prices and price dispersion in the market for borrowing stock? Professor Reed’s research has been published in The Journal of Finance, The Journal of Financial Economics, and the Review of Financial Studies. The research has been cited in The Wall Street Journal and The New York Times. Professor Reed worked for the Board of Governors of the Federal Reserve System. He received his PhD and masters degree in finance from the Wharton School at the University of Pennsylvania and his BA in applied mathematics and economics from the University of California at Berkeley.