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

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Presented by

Tom Eckett, Editor, ETF Stream

About this talk

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 explored 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. Speakers: Jamie Hartley, European Head of Capital Markets, DWS John Keogh, Managing Director, Susquehanna International Securities Alex Livingstone, Head of Trading - FX & ETFs, Titan Asset Management

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This webinar channel is for professional investors and other members of the European ETF ecosystem. Here you will find discussions with leading industry figures on topics such as new regulatory policies impacting the European ETF industry and trends defining the market. Discover other events and the latest ETF industry news and analysis at etfstream.com.