[5] Some financial professionals, including Wall Street veteran Jeremy Frommer are pioneering the application of transparency to hedge funds by broadcasting live from trading desks and posting detailed portfolios online.
[citation needed] This requirement seeks to enhance accountability and deter the misuse of anonymous shell corporations for unlawful purposes.
[citation needed] There is a rich literature in accounting that takes a critical perspective to market transparency, focusing on the nuances and boundaries.
This creates great obstacles for traders, investors, and institutions to overcome as there is a lack of transparency, leading to the need to develop trust with trading partners and developing these relationships through social means, such as "gifts of information", which is even seen on the trading floors of global investment banks that service institutional investors.
[13] With little to no transparency, trader's ability to verify transactions becomes virtually impossible, at least if one does not have faith that the market exchange is operating in a well-run fashion, a problem that is unlikely with the major brokerage services open to institutional investors (e.g. Reuters, Bloomberg, and Telerate).
In a situation with a problematic market exchange lacking transparency, there would be no trust between the client and the broker, yet surprisingly, there is nonetheless demand to trade in dark pools.