On 16 April 2018, the Global Financial Markets Association (GFMA) published Guiding Principles for Market Transparency. The GFMA supports transparency requirements that are appropriately tailored for regulators to enhance market integrity through surveillance.
The GFMA encourages policymakers and regulators to design market transparency frameworks in line with the following principles:
- transparency to regulators should be timely, consistent and appropriate to fulfil market surveillance duties and to support market integrity;
- 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;
- the level of transparency and timing for reporting should be appropriately calibrated based on regulatory intent, market structure, and liquidity profiles of specific assets;
- an effective transparency framework is based on consultation with all market participants and a cost-benefit analysis; and
- the market’s ability to implement requirements, including on a cross-border basis, if appropriate, is critical.