Market Taking an Unfortunate Toll on Traders

by StockJockey

Friday, October 17, 2008 - 5:41 pm

Although I only spent a few months in and around the S&P pit at the Chicago Merc it was hands down the most fun I have ever had.

The traders and clerks who were CME lifers were a hardscrabble lot...many were south side Irish who drank too much scotch. And tough on Cubs fans. It was a fast money crowd before the show, but with a midwestern twist. They were good people at the core, just a little deranged.

I saw some crazy shit go down in and around those pits, but this takes the cake. A sad story but one I have been expecting to read....

A pit trader at the Chicago Mercantile Exchange who was despondent because of financial market turmoil was found dead in an apparent suicide Thursday morning, Berwyn police said Friday afternoon.

Joseph Luizzi, 44, of Oak Brook, died of a gunshot wound to the head, said William Kushner, Berwyn’s police chief.

Luizzi traded futures for his own account in the Standard & Poor’s 500 stock index, which has been extremely volatile during the financial crisis.

Colleagues on the trading floor who knew Luizzi were stunned by the news. Luizzi, who became a member of the Merc in 1982, “always had a smile on his face,” said trader Robert Venit. “No one had a bad thing to say about him.”

Luizzi, a former Berwyn resident, parked his car by his previous residence, walked to the vicinity of the Metra tracks, and left a note before shooting himself once, Kushner said.

The contents of the note were not disclosed.

Attempts to reach the family by the Tribune were unsuccessful.

Crains Chicago Business ran a piece:

News of Mr. Luizzi’s death stunned Chicago’s trading community.

Groups of traders and clerks stood in small groups on CME’s trading floor Friday morning talking about the longtime trader.

“It’s a great loss,” close friend Maria Fernandez said.

“He was a sweet guy,” said a teary Sharon Sumler. “He had such a warm spirit.”

Independent traders like Mr. Luizzi typically buy and sell throughout the day. In volatile markets, even a few wrong-way bets can have big repercussions.

“We express our condolences and sympathy for family, friends and all who knew him,” said a CME spokeswoman, who declined to comment further.

Mr. Luizzi’s death came hours after a plunge in the stock market. The S&P 500 posted its biggest gain since the 1930s on Monday before plunging the most since the crash of 1987 on Wednesday. It lost 9% to close at 907.84. The same day, the Dow Jones Industrial Average dropped 7.9%.

Friends and co-workers also weighed in....

I worked with Joe Luizzi for about 6 years at HSBC and I don’t know of anyone with a bigger heart than he had. The fact that anyone would say anything bad about him makes me sick to my stomach. He wasn’t one of those flashy car driving, business suit wearing types. He was just a guy trying to make a living for himself when the jobs on the trading floor started drying up. I’m glad I can’t see what that man wrote....

Rest in Peace, Joe.

Police: Despondent trader killed himself
Chicago Tribune

Trader takes own life over large losses
Chicago Business
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Comments:

so sad

Posted by upsidetrader on 10/17/2008 at 09:49 PM

Index futures trading along with forex trading us really difficult, RIP to these poor traders who just could not go on.

Posted by Ruben on 10/18/2008 at 10:06 AM

This is the worst news I have heard in 20 years!! Joe was one of the greatest guys I have ever known! This is a huge loss to the many lives he could have still touched! I will miss him!

Posted by on 10/19/2008 at 10:42 PM