Charlie D--The story of the legendary bond trader

Accounting History,  Nov 1998  by Henry, Darren

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Charlie D - The story of the legendary bond trader

William D. Falloon: New York, NY: John Wiley & Sons, Inc..1997.

This book is a biographical tribute to the life of Charles Paul DiFrancesca or, as he was known to his colleagues and the financial community, Charlie D. Those people not familiar with the US share and futures markets will probably not have heard the name Charlie D, although he is heralded by many as the greatest futures trader in the world. This lack of recognition does not, in any way, preclude the ability to read or enjoy this tribute, as it speaks as much about the warmth and generosity of Charlie D as a person as it does his life as a bond trader on the floor of the Chicago Board of Trade.

While passionate about football in his early life, Charles DiFrancesca developed a passion for football, and end it with a passion for trading bond futures contracts alongside some of the biggest risk-takers in the financial world. Some say that he was the biggest risk-taker of them all, but not in any reckless fashion, and the biggest influence on the actions of Charlie D was not greed, but the urge to compete and be competitive in whatever he did. This extended from trading tick movements in futures contracts with renowned bond traders such as Steve Lawrence and Tom Baldwin to playing golf with the likes of Michael Jordan.

Charlie D was not always a bond trader. His first big break came in the form of a condominium development, which provided the initial capital to acquire his seat on the Chicago Board of Trade. It was not long, however, until Charlie D had revolutionised bond trading, trading more volume and market positions individually than many of the large brokerage and investment houses. This was seen as risky to most observers, but to Charlie D it increased his odds of success and profit. He was also a stringent market technician, absorbing all the available literature about futures markets and bond trading strategies, some of which only he would contemplate, let alone attempt on the trading floor.

Although impressive, his bond trading ways do not describe sufficiently the life of Charlie D. They beg of ability, self-confidence, intellectual prowess and a burning desire to succeed in whatever task he assigned himself. More fitting is the effect he had on others around him. Tales of his generosity abound throughout this book, from the fifty guests he invited to New York to help celebrate his wife's 40th birthday, the campervan he gave his high school football coach on retirement, to the funding of the college educations of his housemaid's son and others less fortunate than Charlie D. A heart-warming story recounted within involved a worker at a news-stand at the Chicago Board of Trade who was down on his luck. This same person won the lottery with part of a one-hundred dollar bill given to him by Charlie D in return for his assistance in locating a Golf magazine. Other stories of a man with the Midas touch are entertained, although whether Charlie D possessed such a gift is left to the reader's hope and imagination.

Charlie D was afflicted with lymphoma and passed away on May 23, 1991, at the age of 39. His mother and brother were also diagnosed with cancer shortly after Charlie D's condition was initially revealed, although their treatments were more successful. Charlie D continued to work at the Chicago Board of Trade until two weeks before his death.

Overall, this book is an inspirational insight into the life of a man who made the Treasury bond futures market the success that it is today. For the uninitiated, the description and detail with which Charlie D's bond trading activities are told may be a bit daunting, but enduring this discussion makes the remainder of the book thoroughly worthwhile.

Darren Henry

La Trobe University

Copyright Accounting History Special Interest Group of Accounting Association of Australia and New Zealand School of Accounting and Finance Nov 1998
Provided by ProQuest Information and Learning Company. All rights Reserved