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 ...

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 ...

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 ...

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 ...

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 ...

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 ...

This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author. Westpac will pay the maximum penalty of $1.8 million in relation to the ...

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