Which of the following statements is true about instrument status?

The statement that status can affect the visibility of market data is indeed accurate. Instrument status plays a crucial role in determining whether or not specific market data for that instrument is accessible to market participants. For instance, if an instrument is marked as "suspended," its market data may not be displayed to traders, impacting their decision-making processes. Different statuses indicate various conditions that can change how instruments are traded and how transparent the market is regarding those instruments.

In contrast, instruments cannot have multiple statuses at once, as each status indicates a specific situation that applies to that instrument at any given time. The significant impact of the instrument's status on visibility reinforces the importance of understanding current statuses for effective trading.

While there are scenarios where instruments can be automatically deregistered, this is not applicable to every case following a "closed" status, so that statement lacks universal applicability. Lastly, not all statuses require regular updates by traders, as some statuses may be managed automatically by the system or based on specific market events, such as a trading halt. Thus, the significance of how status affects visibility of market data stands out as a true and critical element in trading operations.