2008 CME Group-MSRI Prize in Innovative Quantitative Applications Awarded to Lars Peter Hansen for Innovative Approaches to Asse
September 30 2008 - 12:00PM
PR Newswire (US)
CME Group Partners with MSRI to Recognize Significant Contributions
in Mathematics, Statistics and Computing CHICAGO, Sept. 30
/PRNewswire-FirstCall/ -- CME Group and the Mathematical Sciences
Research Institute (MSRI) announced today that Dr. Lars Peter
Hansen, Homer J. Livingston Distinguished Service Professor in the
Departments of Economics and Statistics at the University of
Chicago, is the 2008 recipient of the CME Group-MSRI Prize in
Innovative Quantitative Applications. CME Group, the world's
largest and most diverse financial exchange, through its Center for
Innovation has partnered with MSRI, based in Berkeley, CA, to award
the third annual CME Group-MSRI Prize. This award is designed to
recognize individuals or groups who contribute original concepts
and innovation in the use of mathematical, statistical or
computational methods for the study of the behavior of markets, and
more broadly of economics. Professor Hansen will be honored and
presented with the CME Group-MSRI Prize medal at a recognition
ceremony to be held on Friday, October 24, at CME Group World
Headquarters. In addition to the medal, a $25,000 cash award is
also bestowed upon the CME Group-MSRI Prize winner. In conjunction
with the award ceremony, a seminar entitled, "The Fed, the Treasury
'blueprint,' and the future of financial institutions," will be
held with moderator Darrell Duffie, James I. Miller Professor of
Finance, Graduate School of Business, Stanford University, and
panelists Raghuram Rajan, Eric J. Gleacher Distinguished Service
Professor of Finance, University of Chicago Graduate School of
Business; Anthony Santomero, former President of the Federal
Reserve Bank of Philadelphia and currently Richard King Mellon
Professor Emeritus of Finance at the Wharton School, University of
Pennsylvania; and Chester Spatt, Kenneth B. and Pamela R. Dunn
Professor of Finance and Director, Center for Financial Markets,
Tepper School of Business at Carnegie Mellon. In the 1980s
Professor Lars Peter Hansen became established as the leading
contributor to the development and application of rigorous
estimation and testing methods for financial data. His 1982 paper
on Generalized Methods of Moments fundamentally altered the way
that empirical research is done in finance and macroeconomics. This
new methodology led him, with Ken Singleton, to make one of the
pioneering contributions to what became known as the "equity
premium puzzle." Hansen continues to be a prolific researcher. He
is part of a team investigating how long-run risk tradeoffs are
encoded in asset prices. Hansen has also collaborated with others
to develop models in which investors guard their investments
against possible model misspecification, which they have shown are
reflected in security market values and contribute to price
dynamics. Professor Hansen is a member of the National Academy of
Sciences and American Academy of Arts and Sciences, and fellow of
the Econometric Society and a fellow of the American Finance
Association. Hansen is a former John Simon Guggenheim Memorial
Foundation Fellow and Sloan Foundation Fellow. Since 1981 Hansen
has served on the faculty of the University of Chicago's Department
of Economics, where he was the former director of graduate studies
and chairman. He is the recipient of the 2006 Erwin Plein Nemmers
Prize in Economics from Northwestern University, a Faculty Award
for Excellence in graduate teaching from the University of Chicago,
and co-winner of the Frisch Medal from the Econometric Society. In
acknowledging the award, Prof. Hansen said, "Probability theory and
statistics provide wonderful tools to explore financial economics.
I expect they will continue to provide insights into the
understanding of the economic underpinnings of financial markets
just as they have served other scientific fields of endeavor. The
MSRI and the CME Group are wise to nurture such productive
linkages. I am surprised and honored to be awarded the third CME
Group-MSRI Prize and be in the esteemed company of Stephen A. Ross
and David M. Kreps." CME Group Chairman Emeritus and CME Group-MSRI
Prize Selection Committee member Leo Melamed said, "Dr. Hansen's
decades of mathematical research have brought about significant
advances in the world of financial economics. His development of
the Generalized Method of Moments, which helps analyze economic
models in numerous fields, has become one of the top statistical
tools for the analysis of financial data. I am honored to present
to Dr. Hansen, the CME Group-MSRI Prize in Innovative Quantitative
Applications." Robert Bryant, CME Group-MSRI Prize Selection
Committee member and Director of MSRI said, "The insights of Dr.
Hansen wonderfully illustrate the remarkable results that can be
gained through the application of mathematics in economics; he
shows how mathematical intuition and rigor can relate directly to
real world problems. It is extraordinarily fitting to have CME
Group, which leads in innovation in a very practical field, and
MSRI, which seeks innovation in a very fundamental sense,
collaborate to present this prize." The 2008 CME Group-MSRI Prize
Selection Committee includes: Leo Melamed, Chairman Emeritus, CME
Group; Anat Admati, Joseph McDonald Professor of Finance and
Economics, Stanford Graduate School of Business; Robert Bryant,
Director, Mathematical Sciences Research Institute; Darrell Duffie
(Committee Chair), James I. Miller Professor of Finance, Graduate
School of Business, Stanford University; John Gould, Steven G.
Rothmeier Professor and Distinguished Service Professor of
Economics, University of Chicago Graduate School of Business;
Sanford Grossman, Chairman and CEO, Quantitative Financial
Strategies, Inc.; Steven A. Ross, Franco Modigliani Professor of
Financial Economics at the MIT Sloan School of Management and the
first recipient of the CME-MSRI Prize (2006); Jose A. Scheinkman,
Theodore A. Wells '29 Professor of Economics, Princeton University,
Department of Economics; and Hugo Sonnenschein, President Emeritus
and Adam Smith Distinguished Service Professor, University of
Chicago, Department of Economics. Previous recipients of the CME
Group-MSRI Prize and Medal are: (2007) David M. Kreps, Senior
Associate Dean for Academic Affairs, Faculty Director of the MBA
Program, and Theodore J. Kreps Professor of Economics, Stanford
Graduate School of Business; (2006) Stephen A. Ross, Franco
Modigliani Professor of Financial Economics, MIT Sloan School of
Management. CME Group is a recognized leader in financial services,
exemplifying innovation in action by creating products and services
that have changed the face of modern finance. Because CME Group
recognizes the importance of innovation first-hand, it created the
CME Center for Innovation whose mission is to identify, foster and
showcase examples of significant innovation and creative thinking
pertaining to markets, commerce or trade in the public and private
sectors. For more information on the CME Center for Innovation,
visit http://www.cme.com/about/ins/cfi/index.html. The Mathematical
Sciences Research Institute (MSRI, http://www.msri.org/) exists to
further mathematical research through broadly based programs in the
mathematical sciences and closely related activities. MSRI's
research extends through pure mathematics into computer science,
and statistics applications to other disciplines, including
engineering, physics, biology, chemistry, medicine, and finance. In
addition to its core programs, MSRI offers summer graduate
workshops, programs to enhance K-12 math education, and outreach
programs on mathematical themes. CME Group
(http://www.cmegroup.com/) is the world's largest and most diverse
derivatives exchange. Building on the heritage of CME, CBOT and
NYMEX, CME Group serves the risk management needs of customers
around the globe. As an international marketplace, CME Group brings
buyers and sellers together on the CME Globex electronic trading
platform and on trading floors in Chicago and New York. By acting
as the buyer to every seller and the seller to every buyer, CME
Clearing virtually elimininates counterparty credit risk. CME
Clearing also offers $7 billion in financial safeguards to help
mitigate systemic risk, providing the security and confidence
market participants need to operate, invest and grow. CME Group
offers the widest range of benchmark products available across all
major asset classes, including futures and options based on
interest rates, equity indexes, foreign exchange, energy,
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respective owners. Further information about CME Group and its
products can be found at http://www.cmegroup.com/. The Mathematical
Sciences Research Institute (http://www.msri.org/) is one of the
world's premiere centers for research in the mathematical sciences,
and has been advancing mathematical research through workshops and
conferences since its founding as an independent Institute in 1982.
More than 2,500 mathematical scientists visit MSRI each year in
Berkeley, CA, many for stays for up to one year. The Institute is
funded primarily by the National Science Foundation with additional
support from other government agencies, private foundations,
academic and corporate sponsors, and individual donors. CME-G
DATASOURCE: CME Group CONTACT: Media, Michael Shore,
+1-312-930-2363, or Allan Schoenberg, +1-312-930-8189, , or
Investors, John Peschier, +1-312-930-8491, all of CME Group; or
Anne Pfister of Mathematical Sciences Research Institute,
+1-510-642-0448, Web site: http://www.cmegroup.com/
http://www.msri.org/
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