Experts Recount '87 Crash Horrors.

Traders,  January, 2008  by Bresiger, Gregory

• E-mail
• Print
• Link

Risk models used by traders today pose a problem and should be studied further to ensure their failure doesn't trigger another crash, a former New York Stock Exchange executive recently said.

Former Big Board CEO John Phelan made that point for a Webcast that reviewed the 1987 stock market crash, when the market fell 22 percent. In response to a question on whether another crash could occur, Phelan stopped short of predicting one.

However, he said he is skeptical about the various value at risk (VAR) models employed by some brokerages.

"The great thing about VAR is ...

Read the rest of this article with a Free Trial at HighBeam Research.