It’s Not Transparently Clear That Transparency Increases Competition

Commentary

Prof. Pirrong takes issue with the notion that improved transparency unambiguously increases competition, noting that "greater price transparency [the goal of swap execution facilites] can lead to less competitive outcomes. In particular, transparency can facilitate collusion, and opacity can make it more difficult to collude."

Publication

Streetwise Professor

Date

December 21, 2010

Cross Reference (links require a Cabinet subscription)

Dodd-Frank Act, Title VII, Sec. 733.

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