More detailed disclosure could help investors become more comfortable with dealers’ anticipatory hedging practices, by giving clients more information to help them choose their counterparty.
“Disclosures could shine a light on [these practices], and if the market determines this is bad practice based on that light, there can be a natural shift to change,” says Nihal Patel, a partner at US law firm Fried, Frank, Harris, Shriver & Jacobson. “I do see some benefits in not writing a more prescriptive
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