Information availability furthermore allows regulators to monitor changes in market activity that can lead to the emergence of potential new risks. Finally enhanced transparency can support the development of appropriate policy responses in times of stress.
Improved transparency can help market participants as well as it allows participants to observe how market activity is evolving over time with respect to pricing, liquidity and other characteristics that affect their own risk management and profitability. It additionally can provide information regarding risks that could impact market participants. Increased transparency might also benefit central banks in the implementation of its monetary policy operations.