The Cboe Experience
Rob, Tom, Justin, and more Long Term People
Rob just wanted it more.
We were hiring an analyst level position at the New York Stock Exchange, and there were lots of impressive job candidates. We had a tough choice ahead of us. We were just about finished with the interview process. Only one interview left.
Tom Champion* popped into my office. “Phil, you are next to interview Rob. You are going to love this guy. I promise you, you are going to absolutely love this guy.”
He wasn’t wrong. Tom Champion rarely is.
We had prioritized grit and heart and hustle on our team. That’s what we were looking for. And Rob showed so much grit in those interviews he had Tom fired up, and I would soon follow.
Rob had family ties to the exchange, and not from the top-down but from the bottom-up. He had a legacy that he was destined to build. Nothing was going to stop him. That was clear to us from the beginning: nothing was going to hold this guy back.
Like I said, Robert Marrocco just wanted it more. And he still does.
*Let me jump in here with a quick aside about Tom Champion. Tom is the smartest guy in the entire ETF industry. When I got to the exchange I knew nothing about the listing rules and market structure nuances that I’d soon have to become an expert in. So my entire first year there was spent taking calls from ETF issuers and responding “I don’t know the answer but I will find out and come back to you”, and then walking into Tom’s office to ask him. And here’s the thing about Tom: he would never respond with a simple yes or no. He would tell me yes or no, and then tell me which exact rule that answer was based on. And then he would print out the rule text. And then he would highlight the relevant sections. And then he would explain to me how the issuer might petition for an exemption or where there might be gray area or flexibility in the rule. He always did this, every single time. It allowed me to learn so much, and it allowed me to look really good to our issuers and clients. And mostly, it set an example for the entire NYSE team to not be lazy or give curt responses, but to take the extra time to give a more in-depth and nuanced response. Learning from Tom was one of the highlights of my career.
This team we had at NYSE was something else. We had a great leader in Laura Morrison. We were kicking ass and having fun. We had a 95% market share, at a premium fee schedule. We had a strict cactus policy (pricks on the outside). We were generally underpaid, but none of us cared. We were happy to be there.
Careers change, people come and go, and while some of my NYSE colleagues are still there, many have moved on. It’s been a thrill to watch people succeed across the industry or in new endeavors.
Rob’s inevitable career rise has so far taken him to the Cboe exchange, where he is now the global head of Exchange Traded Products.
A few years ago when I had my first opportunity to list an ETF as an issuer, I listed it on the Cboe. Given my NYSE pedigree that was not a decision that was well received on Broad & Wall. But at the end of the day, I’d rather be loyal than popular. And choosing between loyalty to a company and loyalty to people, well you can read my thoughts on that right here.
Cboe has got some energy, man.
That’s the first thing that hits you. The energy. Cboe doesn’t feel like a museum, but a living and breathing exchange. The trading pit gives off this energy. Capitalistic, aggressive, dangerous energy.
The S&P futures pit trades over $1 Trillion per day. The VIX pit has become, perhaps, the most important harbinger in the global markets. And about 30% of the trading volume is done in person, hand-to-hand.
And the ETF team, Rob’s ETF team, it’s got some energy. Marc De Luise is a pro’s pro. Victor, Eric, Kyle, everyone there reflect the grit that Rob has established. Rob still wants it more, his team wants it more, and they are going to do more to win business than anyone else. It oozes off of them.
Last week we had the honor to ring the closing bell at Cboe in celebration of the three year mark of an ETF I shall not name*
*So here’s the thing. If I mention an ETF name or ticker on this blog, the entire blog falls under the review of Finra, which means I have to pay a few hundred dollars and wait a few days for every single post to be reviewed by compliance. This is at the same time that Meme Coins have been classified as non-securities, whatever that means, so I can shill those as much as I want. And I can tell people to sell their liver instead of selling the assets I personally own, no problems there. But I can’t tell you the ticker (or year-over-year performance versus the category leader) of a broad REIT fund. Yay, regulation!
So Cboe’s got some energy. And I even got to stand right next to one of my heroes, the great Rick Santelli. What a thrill. What a blessing.
The Cboe experience wasn’t all about me. Justin Goldberg was the driver of the ETF that shall not be named, and I’ve been partnered with him for three years now.
It has not been an easy three years. Startups rarely are.
There have been ups and downs. Some people have disappointed me, and I have disappointed some people. I have disappointed myself. I don’t want to tell all of those stories here and now, but like I said, it has not been easy.
Yet we have persisted. Whatever obstacles we encountered, we never considered retreat. We took on some really big opponents - perhaps the biggest. And we did it with tenacity, with diligence, and without fear.
And when you go through these things together, you really get to see what your partners are made of. And I got to see what Justin is made of. In every scenario, at every turn, I could count on Justin to do the right thing, the ethical thing, the smart thing and the Long Term Thing.
It might sound like I am reflecting on Armada at the finish line, but in fact it is the opposite. We are at the starting line. We are at the starting line with new partners, themselves Long Term People, in the right place at the right time with the right technology to disrupt this industry in ways that are worth doing. That can really make an impact, build a legacy, and build things for scale the right way from the bottom up.
Because you can’t disrupt and industry without disruptive technology.
But for the details on that last point, you are going to have to wait just a little longer.
Very smooth. Very subtle.
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