This update concerns pre-hedging practices in securities markets and does not involve payment services, payment instruments, or payment infrastructure.
While payment processors handle transactions, this update is purely about securities trading hedging conduct and has no connection to payment processing, clearing, or settlement.
Specialism
This update concerns pre-hedging practices in securities markets and does not involve payment firms, payment services, or any of the defined payment compliance specialisms.
While the guidance addresses market conduct expectations, it does not fall within any core payment compliance taxonomy category and is outside the scope of payments regulation.
2026-07-10 09:30:26·kgurnani@vixio.com
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Consultation paper 389 seeks feedback on a draft regulatory guide for market participants on pre-hedging.
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TITLE: Australian Securities and Investments Commission Proposes Regulatory Guide on Pre-Hedging
BODY:
On June 15, 2026, the Australian Securities and Investments Commission (ASIC) released Consultation Paper 389 seeking feedback on a draft regulatory guide addressing pre-hedging practices among market participants.
The proposed regulatory guide aligns with recommendations from the International Organization of Securities Commissions (IOSCO) and builds on guidance ASIC previously provided in an open letter to chief executives of market participants. ASIC emphasizes that the draft guide does not introduce new legal requirements but rather codifies existing expectations and best practices. The guide is intended to provide clarity on pre-hedging conduct and help market participants understand regulatory expectations in this area. ASIC is also consulting on whether to include examples of observed better practices within the regulatory guide to enhance practical application and compliance. The consultation seeks input on the appropriateness and effectiveness of the proposed guidance, as well as feedback on whether additional illustrative examples would improve market participants' understanding and implementation of pre-hedging standards.
Market participants, including investment banks, asset managers, and other entities engaged in securities trading and hedging activities, should review the draft regulatory guide and consider submitting feedback. The comment period closes on July 27, 2026. Responses can be submitted through ASIC's consultation process. Following the consultation period, ASIC is expected to consider feedback received and publish a final regulatory guide, incorporating any amendments deemed necessary based on stakeholder input.
CP 389 Proposed regulatory guide on pre-hedging | ASIC Skip to main content Find a document CP 389 Proposed regulatory guide on pre-hedging consultation paper – 389 Released 15 June 2026. Comments due 27 July 2026. This consultation paper seeks feedback on a draft regulatory guide for market participants on pre-hedging. The draft guide aligns with IOSCO’s recommendations and builds on guidance we have previously provided in an open letter to CEOs of market participants. The draft regulatory guide does not introduce new legal requirements. We are also seeking feedback on whether to include examples of observed better practices in the regulatory guide. Downloads Consultation Paper 389 Proposed regulatory guide on pre-hedging (PDF 440 KB) Attachment to CP 389: Draft RG 000 Pre-hedging (PDF 666 KB) Related links ASIC invites feedback on pre-hedging guidance