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ETF Investigations: Pre-hedging or frontrunning: Are ETF investors losing out?

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Event Details

Date: 15 Mar 2023

Time: 11:00 - 12:00

ETF Investigations: Pre-hedging or frontrunning: Are ETF investors losing out?

Live webinar

ETF investors are suffering significant trading costs when executing on request-for-quote (RFQ) due to pre-hedging, a process where market makers front run orders to capture the performance on known trades.
 
The European Securities and Markets Authority (ESMA) issued a ‘call for evidence’ last July on the practice of pre-hedging, highlighting concerns the regulator has over the practice.
 
This webinar will explore the impact pre-hedging is having on end investors and the wider ETF ecosystem when trading on RFQ platforms and whether regulatory intervention is needed to address this issue.
 
Key questions:
• Is pre-hedging on RFQ platforms a form of frontrunning?
• Is there anything that can be done to protect ETF investors?
• Are there any unintended consequences if regulators step in?
 
ETF Investigations is a new webinar series from ETF Stream which examines the key issues facing ETF investors in Europe.