Consequently, the limited transparency will diminish the reliability of the available pricing information, making the markets less efficient. BlackRock (NYSE: BLK) revealed that the reported daily ETF volume in Europe was $6.5 billion in August compared to the $102.6 billion in the U.S.
The ETF industry is currently lobbying for post-trade reporting requirements, hoping to increase transparency and attract retail investors.
For more information on ETFs, visit our ETF 101 category.
Max Chen contributed to this article.