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.

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November 1, 2012

Same Movie, Different Market

By Tom Steinhert-Threlkeld

But that, he said, is due to macroeconomic issues, like sovereign debt stresses in Europe-forces out of the control of foreign exchange traders or system suppliers.

"And that's a shame. Because it's not good for our business. There's nothing we can do to get people to trade more," he said.

"Lower our prices? I don't think people are going to trade anymore," he added.

The trick in implementing new systems, he said, is not to accept the existing ones, like those routine [word missing?] that mandate that installing a fresh server will take six weeks.

When confronted with a dictum that sets a fixed, six-week installation, Rubinow said he would ask an installer: "What if I told you that that server going in that rack, someone's life was dependent on it?"

The answer Rubinow said he got was: "If you put it that way, I could have it done by the end of the day."

Rubinow's response, in turn: "Now I've opened your mind a little bit, we know that on the low end we could do it today."

Meaning: An industry changes how it operates, if it allows itself to change.

"I'm always trying to put myself out of my comfort zone," Rubinow said. "So I'm not saying that I'm the world's leading expert in this and I kind of dial the job in and could do it in my sleep. God, it's not that easy. But from the perspective of looking for new challenges, this is ... like equities was once upon a time and we're replaying the movie."

And now it is refreshing to say, "I know how to produce the movie better the second time around because I'm so much smarter," Rubinow said.



SNAPSHOT: Steve Rubinow

TITLE: Chief information officer


BUSINESS: Supply of systems for trading electronically in different currencies

BACKGROUND: Former CIO, NYSE Euronext; former head of technology at Archipelago Holdings; senior technology executive at NextCard Inc., Adknowledge and Fidelity Investments

EDUCATION: B.S., M.S. and Ph.D. degrees in chemistry and business at the University of Illinois, as well as computer science at DePaul University

CHALLENGE: Bring speed and efficiency to the trading of foreign currencies, for large financial institutions.

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