If you asked 10 different securities finance experts to define the word transparency, you would likely receive 10 different answers. While the current drive for transparency has stemmed from regulators, the perception of what transparency really means varies from group to group, region to region, participant to participant.
For instance, agent lenders may want to know rates at an intraday frequency so they can best serve their underlying clients; corporate entities want to track how they are perceived by the market at large; regulators want to monitor risk and its effects on the structure of the financial markets. For the securities finance industry, transparency is in the eye of the beholder.
In this new podcast, I review a few tricky questions about the evolution of transparency in securities financing. Spend a few minutes listening to the interview and let me know your thoughts in the comment section. Do you have a different way of looking at transparency that we did not cover? Do you agree that transparency is in the eye of the beholder?
While you’re here…