Systemic and prominent market participants and infrastructures (such as the National Payments System, which my colleague Dave Mitchell will provide more detail on later) require appropriate regulation, supervision and oversight. It is thus imperative that relevant regulatory authorities have the oversight powers and resources to carry out this task.
Timeliness of the data would also be an issue. A public database of nonproprietary information could provide the public with a general picture of hedge-fund activity without creating the false impression that the authorities were engaged in prudential oversight of hedge funds. Such a public database might demystify hedge funds, but it would not address the central policy concern that opacity creates liquidity risk.