Guiding Principles for Market Transparency
16 April 2018
GFMA published Guiding Principles for Market Transparency.
Increasingly, regulators are developing public transparency requirements across markets and jurisdictions, which highlights differing policy objectives for rules and the need for shared global principles. Market transparency requirements should support specific policy objectives, consider the fundamental structural differences between markets and among asset classes, and provide meaningful and useful information to market participants while doing no harm to market integrity, liquidity, efficiency and resilience. Fundamental structural differences between markets, including participants and their needs, preclude a “one-size-fits-all” approach.
GFMA encourages policymakers and regulators to design market transparency frameworks in line with the following principles:
I. Transparency to regulators should be timely, consistent and appropriate to fulfil market surveillance duties and to support market integrity.
II. Public market transparency requirements should support the provision of liquidity for price formation and risk management, while doing no harm to market integrity, liquidity, efficiency and resilience.
III. The level of transparency and timing for reporting should be appropriately calibrated based on regulatory intent, market structure, and liquidity profiles of specific assets.
IV. An effective transparency framework is based on consultation with all market participants and a cost-benefit analysis.
V. The market’s ability to implement requirements, including on a cross-border basis, if appropriate, is critical.
Full Press Release here.