Commentary

John Turney
Traders Magazine Online News

Foreign Exchange Infrastructure: Yesterday, Today and Tomorrow

In this exclusive to Traders Magazine, John Turney, Global Head of Outsourced FX at Northern Trust, discusses the evolution of the fx infrastructure and what is to come.

Traders Poll

What is your favorite movie about trading?

Wall Street

23%

The Big Short

13%

Margin Call

6%

Equity

0%

Trading Places

38%

The Wolf of Wall Street

8%

Boiler Room

7%

Arbitrage

0%

Too Big to Fail

5%

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September 28, 2006

Sign Me Up

By Michael Scotti

I noticed in this issue of Traders Magazine that the association that looks out for the interests of traders will be offering online classes. The Security Traders Association will give traders the opportunity to brush up on ethics, options and technical analysis. Not a bad thing to consider. We all have to continue to get better just to stay even. That goes for editors, too.

BusinessWeek recently did a piece on global competition. And it's fierce. At some point, the success of American business gets worked into our economy here. Then something gets traded. That's good for you folks.

Right now, our staffers and I wouldn't mind taking a class in options. It would help us better understand this instrument and how it trades. Without the luxury of such a class, Nina Mehta just completed a two-part story on the options marketplace.

Ms. Mehta followed last month's story on trading options in pennies with this month's piece on competition among the exchanges. You'll read how consolidation could be a reality for the six options marts in the U.S.

I'm also pleased to announce that Ms. Mehta has joined our staff as senior editor. She's a good one and we're glad to have her. This month she also interviewed the ISE's Andrew Brenner, who is spearheading this electronic options market's foray into equities. The interview appears in our Questions & Answers section. First, ISE plans to launch a matching system. Then it will start a continuous market in December. This crossing network showdown is also becoming interesting: Who, among the myriad of systems, is going to have the best mousetrap?

Did someone say algorithms? Did you ever wonder which broker or vendor has the best algorithm? And can trade-cost measurement be used to make that decision? This month's feature on algorithms analyzes those two questions. The piece, contributed by Melanie Wold, demonstrates deep differences of opinion. Some of the comments are also darn interesting.

Lastly, many in the trading community were saddened last month to learn of the death of Tony Ricotta, the former publisher of Traders Magazine. If there were a club for good guys on Wall Street, then Tony Ricotta would have been on its board of directors, if not its chairman.

Tony will be missed. From sales to accounting to journalism, Tony Ricotta made his mark wherever he worked. Tony also made his mark on people, and that is why he will be remembered.

Michael Scotti

Editorial Director