DAVID ALDRICH, BANK OF NEW YORK MELLON

The most notable development so far has been the impact of the credit crunch on the extent of leverage in the market combined with the increased focus by participants on counterparty risk. Leverage has markedly reduced as both the availability and cost of credit has increased. When combined with strong volatility this has made for poor returns to investors for many strategies. Without doubt, due to the turmoil in markets creating highly volatile trading conditions, the star strategy overall