How Does Post-Trade Reporting Differ between Traditional and Crypto OTC Markets?
Traditional dark pools are mandated to report trade details, like price and volume, to a Trade Reporting Facility (TRF) almost immediately after execution. This ensures post-trade transparency.
Crypto OTC desks often have less stringent or no formal public reporting requirements, though some voluntarily report data to third-party aggregators. This lack of mandatory reporting contributes to the overall opacity of the crypto OTC market.
Glossar
Trade Reporting Facility
Function ⎊ A Trade Reporting Facility (TRF) is a regulated entity designed to receive and publicly disseminate trade execution data, primarily for transactions that occur off-exchange, such as over-the-counter crypto derivatives.
Reporting
Disclosure ⎊ Reporting within cryptocurrency, options trading, and financial derivatives fundamentally concerns the systematic conveyance of information regarding positions, transactions, and risk exposures to regulatory bodies, exchanges, and counterparties.
Mandatory Reporting
Disclosure ⎊ The obligation of mandatory reporting, within cryptocurrency, options trading, and financial derivatives, stems from regulatory frameworks designed to maintain market integrity and investor protection.