Commentary

Momtchil Pojarliev
Traders Magazine Online News

Some Like It Hedged

BNP Asset Management's Pojarliev discusses a variety of options to address foreign currency exposures. Although there is no single best-practice solution for addressing foreign currency exposures, institutional investors have three main choices, he says.

Traders Poll

Amid changes in builder, do you think the CAT project will be completed by 2020?




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December 18, 2007

2007 Review: Introduction

The Year in Trading

Trading pros knew plenty of changes were coming in 2007. Regulation NMS was one reason. Ever-improving technology was another. But the velocity of change caught many within trading departments off guard. They had to adapt like never before.

Indeed, greater fragmentation due to the increasing use of dark pools, as more orders went "dark," only added to traders' difficulties in getting fills this year. It was also a year in which Reg NMS made the New York Stock Exchange floor a shadow of itself. NYSE specialist firms were ready to throw in the towel and give up their pads, as the new hybrid market made profitability elusive in a more electronic trading environment.

One memorable event of the year that impacted traders--and investors--was the credit crunch in August, precipitated by non-performing subprime loans. Equities markets were roiled, volatility nearly doubled and trading volume skyrocketed to the 9-to-10-billion-share range for about a week.

The good news was that the technology withstood the heavy barrage of usage. It bent but didn't break, observers say. Against this backdrop, Traders Magazine presents its year in review of the top trends in 2007.