The Background: Pre-hedging has been the subject of significant debate within the financial industry in recent years, with concerns often raised over potential conduct and market integrity issues. The ...

On November 3, 2025, IOSCO released its anticipated Pre-Hedging Final Report (“Final Report”) detailing its assessment of current pre-hedging market practices and setting out recommended guidance for ...

Recent actions by a number of exchanges have focused on the often-blurry line between sanctioned hedging and pre-hedging that represents a form of market abuse. Regulators have been seeking to define ...

The pre-hedging controversy surrounding guaranteed VWAP bids prompted UBS to send a letter to its clients that discloses its trading practices. The full-disclosure letter says that UBS does not use ...

Though pre-hedging has been lauded by some across the markets as a key way to improve market efficiency, the buy-side continue to have reservations as to its empirical use. The mechanism allows ...

John Keogh, managing director at Susquehanna International Securities (SIG), makes the case for banning the controversial practice, in the wake of ESMA’s latest request for industry input. On 30 ...

The European Securities and Markets Authority (ESMA), the EU’s securities markets regulator, today publishes a Call for Evidence on pre-hedging. The aim is to promote discussion among stakeholders and ...

The Chicago Board Options Exchange, as part of its drive to win order flow away from the over-the-counter market, got a big boost from the Securities and Exchange Commission. The regulator approved a ...

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This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Shroff has been prohibited from performing any regulated function on the ...

ESMA is consulting on a Call for Evidence on pre-hedging. The aim is to promote discussion among stakeholders and gather further evidence on the practice of pre-hedging that could help ESMA to develop ...