FIA and ISDA have responded to the International Organization of Securities Commissions' (IOSCO) consultation on pre-hedging. The joint letter notes the benefits of pre-hedging for derivatives market participants and the difficulty in establishing a single definition across jurisdictions and asset classes.
The letter encourages IOSCO to consider existing industry codes and applicable rules in setting standards. This approach will leverage long-established, tested best practices and provide continuity and clarity to market participants.
