From Securities Technology Monitor, September 28, 2011 by Tom Steinert-Threlkeld:
Marketcore said it received a patent for an “informational netback,’’ where financial market participants are compensated for revealing risks in contracts they undertake.
The patent, styled as Efficient Markets for Financial Products (US Patent 8,027,909), is the third that Marketcore has received. Marketcore is a Connecticut developer of systems for mitigating risks, primarily in fixed-income markets.
This patent covers a system where market participants provide details on the risks involving in financial products and transactions they are involved in. Typically, in the Marketcore approach, contributors of information the market needs to understand risk are compensated for providing such information.
The credits they receive can be applied to acquiring similar information from the marketplace, when pursuing other transactions.
In this case, the “netback” facilitates and compensates market participants for revealing risks in financial contracts.
Marketcore is run by Michael and Constance Erlanger, who founded IPEX, LLC, an institutional whole loan brokerage, which handled orders as large as $5 billion across 60 different types of financial instruments.
To date, Marketcore’s work has been licensed multiple times for applications in the origination of insurance. The company has been pushing for its risk-mitigating technology to be used in fixed-income and other securities markets.
Previously, it received a patent for a data processing system that measures risks in bond markets and acts as a “ticker tape” for prices and values of loans, lines of credit, insurance and reinsurance…
Read the rest of the article in Securities Technology Monitor.