November 3, 2025/IOSCO
The International Organization of Securities Commissions (IOSCO) today published the following reports:
– Final Report on Pre-Hedging;
– Final Report on Environmental, Social and Governance (ESG) Indices as Benchmarks;
– Consultation Report on Recommendations for Secondary Market Disclosure;
– Statement on the Importance of High-Quality Valuation Information in Financial Reporting
These publications are products of the 2025 workplan and part of the outcomes of the board meeting that took place in Madrid last week. The board also held an open and constructive dialogue with Andrew Bailey, Chair of the Financial Stability Board and Governor of the Bank of England, on issues of comment interests. The Board also considered the 2026 Risk Outlook report, as well as the 2026 Work Plan. Other outcomes of the meeting will be published later in the month and include reports on the tokenization of financial assets, on neo-brokers, and on the valuation of collective investment schemes (CIS).
The Final Report on Pre-Hedging considers IOSCO members’ existing regulatory approaches to the practice of pre-hedging and identifies potential issues and gaps in current industry practices and codes. This final report sets out IOSCO’s definition of pre-hedging with the intention of promoting a consistent interpretation of the practice and presents a set of recommendations as guidance for regulators. The final report seeks to facilitate greater consistency and clarity around pre-hedging, and to promote a level playing field for all participants across jurisdictions, asset classes and execution types.
The Final Report on ESG Indices as Benchmarks, provides a comparative analysis between IOSCO’s Principles for Financial Benchmarks (PFBs) and ESG indices that are used as benchmarks, taking into account IOSCO’s Recommendations for ESG Ratings and Data Products Providers.
It compares key characteristics and vulnerabilities of ESG indices relative to traditional financial benchmarks and focuses on identified vulnerabilities as well as on existing market and regulatory initiatives aimed at addressing these vulnerabilities.
The Consultation Report on Secondary Markets Disclosure Principles invites comments on proposed Recommendations for Secondary Markets Disclosures. The Recommendations aim to provide a clear disclosure framework for jurisdictions that are establishing or reviewing their securities regulations related to periodic and event-driven disclosures by listed entities for the secondary markets and to promote greater clarity. This report also includes information for all interested parties, including listed entities and exchanges, to consider in relation to disclosure requirements in the secondary markets.
The Public Statement (“Statement”) on the Importance of High-Quality Valuation Information in Financial Reporting emphasizes the need for international consistency and quality of valuation information included in financial reporting to provide investors with relevant and reliable financial information. Financial statements may often contain elements that represent or are derived from valuation information. As a result, it is important that issuers have robust and sound practices in place to support the development of high-quality valuation information for financial reporting, and external auditors apply sufficient procedures to assess an issuer’s valuation information within its financial reporting as part of the financial statement audit.
“IOSCO’s mission has always been about promoting market integrity and ensuring investors have access to material information to make informed decisions. Today’s four publications all contribute to those objectives in their respective sectors. Now as ever, good conduct and appropriate disclosures should be the cornerstone of resilient market growth and innovation.”
– Jean-Paul Servais, IOSCO Board Chair
“IOSCO’s secondary markets disclosures consultation report and statement on the importance of high-quality valuation set out guidance to ensure market and financial disclosures continue to meet the needs of investors in the constantly evolving public markets. The ESG Benchmarks Report sets out our expectations on what the sound management of these indices should be. Finally, our report on pre-hedging sets out principles of good market conduct across asset classes for this wholesale activity.”
– Rodrigo Buenaventura, IOSCO Secretary General
