Today, Acuiti and Susquehanna release the report – Pre-Hedging in Focus.
Pre-hedging is a divisive but relatively poorly understood topic. Defined as the act of executing a hedge in anticipation of a client trade that is yet to be awarded, pre-hedging’s advocates claim that it improves market efficiency by allowing dealers to offer tighter spreads as they can better manage risk. However, for detractors, pre-hedging can move prices against the client trade, create conflict of interest and distort competition among dealers.
In order to better understand attitudes to pre-hedging among European asset managers, Susquehanna commissioned Acuiti to conduct an independent survey of leading asset managers within Europe. This whitepaper analyses the findings of that study.
The report will answer –
- How aware are European asset managers of pre-hedging?
- What are their attitudes towards the practice?
- What are the perceptions of the market impact of pre-hedging?
- What rules do European asset managers want governing pre-hedging?
Download the full report below.