GFMA publishes response to IOSCO's pre-hedging consultation

Article summary

The Global Financial Markets Association (GFMA) has published its response to a pre-hedging consultation launched by the International Organisation of Securities Commissions (IOSCO). GFMA emphasises the importance of pre-hedging as a risk management tool in financial markets and argues that pre-hedging benefits clients by enhancing liquidity, improving pricing, and facilitating smoother execution, especially for large or complex transactions. The GFMA stresses that pre-hedging should not be confused with unlawful practices and highlights the need for flexibility in regulatory guidance.