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IOSCO final report on global standards for pre-hedging aims to protect asset managers

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Jean Hurley

2 min read
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IOSCO has rejected calls for an outright ban, recognizing that pre-hedging is necessary for dealers to provide liquidity and sharp pricing.

Highly anticipated guidance on the controversial practice of pre-hedging, a move intended to standardize conduct and mitigate the risk of frontrunning across global markets, has been finalized by the International Organization of Securities Commissions (IOSCO).

The final report on pre-hedging, released on November 3, 2025, defines a framework where pre-hedging

​Acceptable risk

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