HONG KONG, LONDON and WASHINGTON,
16 April 2018 – The Global Financial Markets Association (GFMA), which represents the common interests of the world’s leading financial and capital market participants, released “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.
“Financial regulators and policymakers often need access to quotes and transaction details to fulfil their regulatory surveillance duties, monitor trading irregularities, detect market abuse, and support market integrity,” said Mark Austen, chief executive officer of GFMA and chief executive officer of ASIFMA. “We fully support those objectives. These principles provide regulators and policymakers with additional guidelines to reference in the development of public market transparency frameworks, to ensure that they enhance the efficiency, liquidity, and resiliency of markets while minimizing the risk of unintended consequences.”
The Guiding Principles for Market Transparency can be accessed here:
Corliss Ruggles +852 9359 6996
Rebecca Hansford + 44 (0)20 3828 2693
Liz Pierce +1 (212) 313-1173
- The Global Financial Markets Association (GFMA) brings together three of the world’s leading financial trade associations to address the increasingly important global regulatory agenda and to promote coordinated advocacy efforts. The Association for Financial Markets in Europe (AFME) in London, Brussels and Frankfurt, the
Asia Securities Industry & Financial Markets Association (ASIFMA) in Hong Kong and the Securities Industry and Financial Markets Association (SIFMA) in New York and Washington are, respectively, the European, Asian and North American members of GFMA. For more information, visit http://www.gfma.org.