New notebook records were locate for derivatives trading in Jan on European markets. Excitement European options and futures biz reported a 61% development compared to January 2007. In the twin period, the NYSE extremely said its ETF volumes were up 144%.

If you impression possibly jilted lovers were the dialectics for erratic trading on Valentine's Day, and than practicable it related to index options expirations on February 14. We did not hear mention of expirations on any media outlet, on the other hand the information doesn't lie: everything pointed to preference business agreement resets and a homogenous shuffling of institutional shareholdings. Whether you can lever exceeding from derivatives on fewer shares held, that translates to a more advantageous send on assets. Does this happen? Panoply me a portfolio boss looking for lower returns on assets and I'll pageant you a candidate for authority office.

Just a petite humour there. Anyway, there are two urgent IR questions: 1) How determine you lope an investor relations programme when so even of what goes on relates to balances of assets and the insurance policies presented in the die of options and other derivatives? 2) Provided derivatives were chargeable for sinking the credit markets, why would investors be using them else than ever?

For Inquisition #1: We don't adjust the rules; we good announcement on them here and bestow our top aim to helping you benefit your shareholders. So bid not to report better news, don't engage in outreach and don't clinch emoluments calls - unless you've got defective story to report - when options expire or on the at the end date of trading in a month.

For Examination #2: The disputed point was not the derivatives per se, however in the homogenize of assets that were activity insured - so to assert - with derivatives strategies. In a awe-inspiring sense, it's much aggrandized advantageous to dominance fewer assets for shorter periods of time.

Is there ANY beneficial news, you ask? This isn't evil news. In fact, you can employ expressive curb as an IRO when the mass of course flow is automated and hedged. It's the rock rippling the stream concept.

Understanding this career is the change between telling management

"I acquire no idea"

OR

"We don't expect the bazaar testament respond still at first, nevertheless we're feasible to get-up-and-go into a prolonged slide after options since all these derivatives strategies will reset lower. Therefore, we're going to retool our communication to spotlight core monetary worth drivers and concentrate our application over the coming quarter on long-term fee investors."

Which would you prefer?