In the second part of our vox pop about the challenges of hedging bespoke indices we look at ESG diversification, the challenges around customisation as well las how regulation is helping with governance and a view from the buy-side.

Are ESG indices bringing new risk to the market? Gael Riboulet (below right) , global head of solution sales, global markets division, Crédit Agricole CIB’s (CACIB) For us it is about diversifying risk and addressing some of the issues the industry faces and offer new products. Each bank has its own risk policy to assess their risk appetite and risk limits. If there’s less risk appetite on the sell-side the pricing will   get less competitive and the product will be less appealing. Pie

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