Developed by the ݮtv FMA Foreign Exchange Committee.
On Friday 21st February 2025, ݮtv FMA submitted a Public Comment to IOSCO’s Consultation Report on Pre-Hedging (CR/11/2024).
Our response was a result of excellent commitment and work by the members of the ݮtv FMA Foreign Exchange Committee (ݮtv FMA FXC) and it focused on Pre-Hedging specifically in relation to the FX Market.
We believe that Pre-Hedging is an important tool for financial markets and can be beneficial to Clients, Dealers and market integrity when conducted ethically, with appropriate full disclosure, for risk management purposes, and in a manner that is not meant to disadvantage the Client.
The ݮtv FMA FXC works in coordination with a variety of regulators and other FX Committees to promote a common global, orderly and transparent FX Market where all Market Participants can confidently transact. Furthermore, the ݮtv FMA FXC supports and recommends adherence processes to globally recognised good market practices such as the FX Global Code.
To support those adherence processes, we firmly believe that continuous education is essential for all staff members to implement good market practices in their roles, and on an ongoing basis. Given that, about Pre-Hedging on the FX Global Code, our ELAC Portal (for E-Learning, Attestation and Certification on Industry Codes) has several Market Practice Cases/Scenarios that assist all Market Participants to understand the application of Pre-Hedging in “real life”.
ݮtv FMA will monitor the progression and, if appropriate and subject to new information being released, will notify you on further developments and the results of the IOSCO’s Consultation Report on Pre-hedging.
Kind regards,
ݮtv FMA