FMSB puts pre-hedging in the spotlight

The board uses case studies to help market participants navigate a tricky area attracting regulatory scrutiny.

In a move intended to “advance the industry debate on pre-hedging”, the Financial Markets Stability Board (FMSB) has published a Spotlight review on the practice.

The paper cites with approval ESMA’s definition of pre-hedging as any trading activity undertaken by an investment firm:

  1. where the investment firm is dealing
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