Momtchil Pojarliev
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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.

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March 18, 2010

How Low Can You Go?

By James Ramage

Both Hyndman and Smith think the proposal does not go far enough: Tinkering with tick sizes shouldn't stop with lower-priced stocks. The SEC should also look at higher-priced names.

"The SEC needs to look at tick sizes for various stocks--and not just finer tick increments for low-priced stocks," Hyndman said. "We also need to see if we need to go to wider tick increments for some of the higher-valued stocks."

For its part, the NYSE generally supports the concept but, like Nasdaq, is not pushing the issue. The Big Board doesn't see sub-penny quoting as something that could help it restore lost market share, said NYSE Euronext spokesman Ray Pellecchia.

"We don't see this having a significant impact on our exchange business," he said, speaking for NYSE Euronext's exchanges.

At a Security Traders Association of Chicago meeting last month, though, NYSE Arca's head of trading operations, Paul Adcock, told a panel of exchange and ECN representatives that sub-penny quoting could be positive for the markets.

"I am a big fan," he said. "I'd like to see it expanded, whether out to $5 or $10. I'd like to see that happen."


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