Module III· Capital Markets FundamentalsAdvanced
Question

What are pilot fishing and pre-sounding, and where is the regulatory line?

Answer

Pilot fishing and pre-sounding test investor appetite before a public launch, often with selected institutional investors. The regulatory line is around inside information, market abuse, and selective disclosure. Banks use wall-crossing, scripts, NDAs or confidentiality procedures, compliance approvals, and stand-down rules to avoid unlawful disclosure or trading.