January 28, 2025 (NO COMMENTS)

Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events.

Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on pre-hedging, particularly for trades conducted using request-for-quotes, or RFQs.

Dealers have warned that such restrictions could