Undermines market fairness refers to the unfair advantage gained by individuals or organizations that have access to privileged information, such as non-public information about a company's financial performance or a pending merger. This unfair advantage:

1. Distorts market prices and trading volumes.

2. Disadvantages other market participants who do not have access to the same information.

3. Creates an uneven playing field, contradicting the principles of fair and efficient markets.

4. Erodes trust and confidence in the markets, as investors feel that the game is rigged against them.

5. Encourages unethical behavior, as some individuals may seek to exploit their access to privileged information for personal gain.

Market fairness is essential for maintaining the integrity and stability of financial markets. It ensures that all participants have an equal opportunity to make informed investment decisions, without being disadvantaged by unequal access to information. When market fairness is undermined, it can lead to long-term damage to the markets and the broader economy.