WINNIPEG – Fred Siemens remembers well the first time he watched commodity traders in action.
He was an RCMP officer studying exchanges, and the noise and fast pace seemed alien and somewhat archaic.
But Siemens said the more he learned about it, the more he wanted to be at the heart of where market information becomes translated into prices, in what he saw as a microcosm of an industry on the brink of historical changes.
After eight years with the Winnipeg Commodity Exchange, four as its president, Siemens is leaving the futures markets to be president of a new Calgary-based cash commodities exchange.
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Siemens said the presidency was the most interesting job he’s ever had.
“When running an organization like this, you have to be visionary, you have to be a politician, at times you have to be autocratic. Other times you have to be very understanding,” he said.
Siemens ran the business end of the exchange, reporting to the board of governors elected by its 250 members.
He said his 20 years in the RCMP helped him be an efficient administrator, setting up processes for dealing with the endless “micro-problems” that come with the job.
Under his guidance, the exchange also became self-disciplined, meaning members handle problems together rather than being investigated by exchange staff.
At the same time, changes beyond the walls of the exchange allowed him to help change each contract, making them relevant in an industry without transportation subsidies.
The exchange became more international, and started to venture into other commodities like pork. Siemens also got the exchange working on market development, research and education.
Despite all the changes, he said the hardest part of the job was accepting that he couldn’t make change happen more quickly.
He explained the president works for the members, who all have different opinions on issues faced by the exchange.
“They’re aggressive by nature,” he said. “They debate every day, all day. That concept of debate … spills over into how we do business here.”
His style was to “lead from behind, push with a rope.” Getting things done democratically required a lot of patience.
People who know him say he’s thoughtful, more concerned with truth than rhetoric, a gentleman who works within established rules and procedures.
And some in the grain industry have criticized him for keeping the exchange out of the grain marketing debate.
Siemens said he knows some people aren’t happy with the exchange’s direction. But he sees those views more as criticism of the exchange rather than its president.
He said his biggest challenge was the infamous June 1994 canola futures contract, which stopped trading because it wasn’t tracking cash prices.
“It was uncharted territory that we were in,” he said.
Media blew out of proportion what was essentially a disagreement on trading practices, he said, forcing Siemens to spend hours on the phone with concerned callers from around the world
When changing the canola contract, the exchange was the target of a court challenge from growers. But Siemens is satisfied the contract now works for the entire industry.
