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.
More specifically, it can provide information on structural aspects of the repo market regarding asset categories eligible for monetary policy operations and the extent of their use by counterparties as well as information on risk control measures applied.