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 ...

Pre-hedging is controversial because it involves (1) the dealer is using the non-public information of a client’s impending order for the dealer’s own benefit, when (2) the dealer’s trade potentially ...

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 ...

Feb 1 (Reuters) - Australia's corporate regulator on Thursday rolled out supervisory directions for market intermediaries on pre-hedging practices, just a day after a court found Westpac WBC.AX, the ...

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 ...

Thibault Gobert, head of liquidity pool at Spectrum Markets, talks about the paradigm shift in market making over the past decade – and why pre-hedging should be the topic on everyone’s lips right now ...

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 ...

On November 3, the International Organization of Securities Commissions published a series of recommendations to act as guidance for regulators in crafting rules around pre-hedging. The ...

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