Which element is a factor contributing to market integrity?

Government regulations play a critical role in contributing to market integrity. They establish a framework of rules and guidelines that govern the conduct of market participants. Such regulations are designed to ensure fair trading practices, protect investors, and mitigate systemic risks. For instance, rules about disclosure requirements, insider trading, and market manipulation help maintain a level playing field for all investors. A trusted regulatory environment not only fosters investor confidence but also enhances the efficiency and stability of financial markets.

In contrast, elements like high transaction costs can create barriers to entry for smaller investors, thus potentially diminishing market participation and integrity. The convenience of accessing trading platforms generally enhances market participation but does not directly address the integrity of the market itself. High volatility can lead to market inefficiencies and may also pose risks to investors, leading to questions about the reliability and steadfastness of the market. Therefore, government regulations serve as the cornerstone for maintaining market integrity.