# Using Financial Instruments to Transfer the Information Security Risks
## 8 Evaluation
### Carry out Evaluation
#### 8.3.8 Increased Price Transparency  
Information transparency indirectly affects the market performance by affecting the behavior of market participants. Academic studies in the past have shown that a market with the availability of quote information reveals information more quickly and completely than a market without it [138; 139; 140]. Quote information is a pre-trade information that allows traders to deduce other traders' belief on the underlying event based on their pricing behavior [140]. As the traders in prediction market do not collaborate with other traders, but they compete, they are likely to participate more actively in a market with the availability of quote information than the markets without it, provided the market is not facing an extremely limited participation from traders [123].  
In a market where only the highest or lowest outstanding quote information is provided, market participants can only see the buying or selling price of a contract posted by the aggressive traders in the market. In such a scenario, the informed traders may earn more profit by trading with the aggressive traders [139]. On the other hand, less informed traders benefit when more diverse quote information is provided. Furthermore, due to uncertainty about private information and future outcome, the increase in quote information helps market participants infer more information from other participants to formulate/re-adjust their estimates. Thus, higher price transparency is likely to motivate traders to participate actively in the market.  
In a fully transparent market, _i.e._, when all the quote information is revealed in a market, market participants do not trade more actively. Precisely, a market participant can quickly find if at that moment there is any matching buy or sell order in the market. If the market has no matching order, then the trader will wait for a matching order instead of placing his/her order in the market. In such a scenario, informed traders are likely not to reveal their private information in the market. Otherwise, other traders will be able to observe their actions and learn from the same [119; 122]. Thus, these informed traders benefit from trading with private information, leading to less active participation of less informed or uninformed traders.  
Trading of ISD at ISPM can provide unprecedented transparency. The transparency on trading of ISD can be divided into pre-trade and post-trade transparency. Pre-trade transparency includes information on bids, offers, book size, and order book depth. Post-trade transparency is about information on executed trades, such as trade price, trade size, time of the trade, _etc._ Furthermore, the probability distribution results from trades in the market can be displayed in a specified, say histogram, format to allow the market participants and observers gauge the market's consensus belief on the possible outcome of the underlying events.Information security risk managers can benefit from these superior insights, and they can formulate their risk management strategy accordingly.