Consultation papers are like tea leaves or runes: observers study them for clues to future actions or events.
Such is the case with Iosco’s latest consultation paper on the controversial practice of pre-hedging. The document, released last November, has raised niggling concerns among market participants that the global standard-setter may be weighing tighter rules on pre-hedging, particularly for trades conducted using request-for-quotes, or RFQs.
Dealers have warned that such restrictions could
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