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?




Free Site Registration

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."

 

(c) 2010 Traders Magazine and SourceMedia, Inc. All Rights Reserved.

http://www.tradersmagazine.com http://www.sourcemedia.com/