What does transparency in a market help ensure?

Transparency in a market helps ensure greater price discovery by providing all participants with access to relevant information regarding market conditions, transactions, and pricing. When market players can easily access data about supply and demand, trading volumes, and other market indicators, they can make more informed decisions. This increased availability of information allows prices to reflect true market conditions more accurately, facilitating more efficient transactions and aligning prices more closely with the underlying value of the traded assets.

The implications of transparency extend beyond just price discovery; it promotes fair competition between market participants, as they operate from a level playing field with available information. This transparency can attract more investors, both institutional and retail, ultimately enhancing market liquidity and stability.