The Chicago Mercantile Exchange has appointed Myron Scholes, known as the 'grandfather of risk management', to its board of directors.

Scholes, a Nobel laureate in economics, was also a partner at Long-Term Capital Management, the leveraged hedge fund that nearly went belly up in August 1998. The crisis forced a $3.6bn (&#83644bn) bailout orchestrated by the US Federal Reserve and almost triggered a global financial crisis. He will be on the board at the CME for the next two years.