WilmerHale partner Matthew Kulkin and associate Caroline Estey have authored a paper analyzing two recent reports from the International Organization of Securities Commissions (IOSCO). The paper, titled “IOSCO Reports on Pre-Hedging and Financial Asset Tokenization,” was presented to the American Bar Association Business Law Section’s Derivatives and Futures Law Committee.
The authors examine IOSCO’s guidance on pre-hedging practices and the tokenization of financial assets. They assess how these reports may impact regulation in global derivatives and capital markets, with a particular focus on potential effects for U.S. regulators such as the Commodity Futures Trading Commission.
According to the paper, IOSCO’s approach to pre-hedging centers on managing conduct and market integrity risks. The analysis also covers IOSCO’s review of financial asset tokenization, noting trends, risks, and regulatory issues as distributed ledger technology becomes more prevalent in capital markets.
“This paper was presented at ABA’s Derivatives and Futures Law Committee Meeting on January 31, 2026.”
Readers can access the full paper for further details.