
Contents
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Justifications for Selective Transparency or Access Justifications for Selective Transparency or Access
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Inability to Internalize Benefits Inability to Internalize Benefits
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Price Discrimination Price Discrimination
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Relations with Professional Investors Relations with Professional Investors
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Protecting against Civil Liability Protecting against Civil Liability
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Criteria for Regulating Transparency Criteria for Regulating Transparency
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Issuer Size Issuer Size
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Size of the Investor Base Size of the Investor Base
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Sophistication of the Investor Base Sophistication of the Investor Base
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Regulating Access Regulating Access
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Usage Usage
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Type and Depth Type and Depth
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Pricing Pricing
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Channels Channels
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Tiering Transparency and Access Tiering Transparency and Access
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Issuer-Driven Approaches Issuer-Driven Approaches
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Investor-Driven Approaches Investor-Driven Approaches
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Market-Driven Approaches Market-Driven Approaches
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7 Transparency and Access
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Published:April 2015
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Abstract
This chapter discusses regulatory approaches to promoting the transparency and accessibility of information flows. It begins with a discussion of the reasons why issuers may underproduce or restrict the optimal dissemination of information: these include the inability to internalize benefits from a public good, the opportunity to engage in price discrimination, the benefits of selective disclosure to professional traders, and limiting civil liability. It then discusses the traditional criteria that policy makers consider when establishing mandatory transparency requirements (i.e., issuer size, offering size, investor sophistication) and ensuring fair disclosure and fair access to information (i.e., usage, type, depth, pricing, channels). It concludes with a discussion of alternative approaches to tiering transparency and access rules, including issuer-driven, investor-driven, and market-driven approaches.
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