About the Firm: How did you get started?
After graduating from Southern Illinois University, I worked in animal husbandry field for several years. The desire to increase revenue while controlling my destiny led me to the futures industry. My first position in the futures industry was as a broker with Heinold Commodities. Then, in 1984 I started Allendale Inc. with partner Bill Biedermann. Our focus was to provide the best service possible to our customers and reward the personnel that worked the hardest. We are a full service brokerage firm and our customers are still our most important asset.
Do you provide additional services besides brokerage?
Being a full service firm we are always looking for ways to add value to our services. We provide unique research on agricultural commodities for our clients. Our research staff produces the Allendale Research Center available by subscription on our website www.allendale-inc.com. We also produce the annual Allendale Outlook Conference for the past 24 years. It is held near our corporate headquarters in Crystal Lake, IL. This allows for us to meet our clients and prospects face to face. We believe communication with our customers is very important which causes the necessity to develop the use of technology services, such as email, texting, electronic order entry and social networking.
What are the biggest challenges your clients face today, and how do you help them?
Our business focuses on agricultural clients and their challenge is making marketing decisions in extremely volatile markets. We also work with their lenders whose concern is margin requirements for hedgers. Our staff develops strategies that meet the individual needs of each client from the commercial or end user to the producer. Incorporating the use of options into the marketing plan has been a huge advantage to our clients as it can provide control of risk and margins.
How has the futures and options industry evolved since you first started in business?
When I started in the industry futures contracts were the only game in town. Today, as brokers we have so many ways to participate in the market place. We have futures, options, derivatives and many combinations thereof. The biggest change is the disappearance of open outcry and surge in electronic trading. Our volume has increased because of more efficient service due to technology. Customers can place their own orders or have a broker handle it. Customers are notified of fills immediately. The increase in volume has created a “double edge sword” for us and our clients. It provides liquidity for easier price selection but with increased volume comes volatile price swings.
What do you believe to be the keys to your success?
Listening to our customers has to be number one key to Allendale’s success. Figuring out their needs and providing the service to fill that need is what Allendale has focused on for our 27 year in business. The brokers or the people that have worked at Allendale are another important factor to our success. We stayed focused on the task and rewarded them for their excellence. Creativity is another trait that has kept us in business for all these years. Finding people with the same vision as the leadership is important to reach your goals.
What trends are you most excited about/worried about?
We are excited about the tools we have available and believe it provides tremendous opportunities for those who want to take on the challenge. The concerns are the regulatory fall out from the Dodd-Frank Act. The CFTC is still developing rules targeting the derivatives market which could carry over into the futures industry. We have to stay focused and comment on CFTC rule development when requested in the Federal Register. Stay in touch with Melinda and others at the NIBA so your voice will be heard.
Why did you become a member of the NIBA?
I got involved in the NIBA early in the formation of the organization because I wanted to learn what other successful IBs were doing to grow their business. Every meeting and every conference I attended I came home with new ideas which benefited my company. It is important to be active in the organization to get the true benefits. Serving as President of the NIBA during my involvement was very beneficial to my success in the futures industry. The NIBA was a huge support in my election to the NFA Board of Directors.
CONTACT
Paul Georgy at Allendale Inc.
t: 815-363-5500
e: pgeorgy@allendale-inc.com
www.srcattorneys.com
SRC, PC is a law firm in Chicago experienced with the needs of the financial community. Contact Steve Pherson, Partner & NIBA legal advisor at spherson@srcattorneys.com.
