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European Asset Managers Push for Stricter Pre-Hedging Rules Amid Market Fairness Concerns
European Asset Managers Push for Stricter Pre-Hedging Rules Amid Market Fairness Concerns
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BTCCSquare news:
European fund managers are demanding tighter restrictions on pre-hedging practices, citing adverse pricing and insufficient transparency. A recent Acuiti study, commissioned by Susquehanna, reveals 92% of respondents believe pre-hedging disadvantages their trades by moving prices unfavorably. Over 80% argue dealers should only hedge after trade execution.
The buy-side's unease centers on conflicts of interest and market integrity, with just 4% consistently aware when dealers pre-hedge their orders. While recognized as a risk management tool, the practice faces growing scrutiny for its potential to distort execution quality. Nearly half of asset managers report observing suspected pre-hedging activity without proper disclosure.
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