NEW YORK, N.Y., October 30, 2009 – On Tuesday October 27, at the annual meeting of the Securities Industry and Financial Markets Association in New York, Richard Ketchum, Chairman of the Financial Industry Regulatory Authority (FINRA), called for the creation of a single repository of data on all trades on all markets so that the financial industry could be “surveilled by a unified single regulator.”
Marketcore, Inc. provides the framework for just such a single repository of data. Marketcore has long proposed that capital market participants and their regulators adopt a transformational financial market model to enhance transparency, increase operating efficiency, reduce the cost of data and analytics, and grow margins and build business volumes. To that end, Marketcore recently entered into an agreement to license a portion of Marketcore’s intellectual property for the development of an insurance exchange (see http://www.marketcore.com for details).
Marketcore’s work has been acknowledged in a recent report by the Congressional Research Service (CRS) in which it is noted that Marketcore “identified the problems in the financial markets that led to the credit and liquidity crisis and devised a solution.” (The CRS is the non-partisan, public policy-focused arm of the Library of Congress.)
Michael Erlanger, Managing Principal of Marketcore, has stated that, “In order for a unified single regulator to be able to effectively operate there needs to be a logical unified approach for both the execution of transactions and the collection and storage of related data. Marketcore has devised a simple framework that provides transparency along with the ability to generate meaningful operating efficiencies and risk assessment.
In particular, Marketcore has identified the lack of real time information as to pricing, relevant transaction terms, counterparties, and contractual performance over time as the major factors in causing the current financial crisis. And, as the world has seen, this lack of real time information has created illiquidity, operating inefficiencies and catastrophic losses for nearly all market participants. Marketcore’s solution creates sufficient ‘incentives for use’ to deliver the necessary information to fully resuscitate failed financial markets. The ‘perfect storm’ that has almost destroyed global financial markets in the last 24 months has made clear the need for a new financial market model that goes beyond increased regulatory supervision and requirements. The markets for loans, lines of credit, derivatives and securitizations continue to be opaque and cry out for a ‘new order’ to avoid future failures.”
About Marketcore, Inc.
Founded in 2000, Marketcore (www.marketcore.com) is a privately-held intellectual property development company that focuses on creating transparency, operating efficiencies, liquidity, value and risk assessment for the financial services industry. The company has consulted to, and been recognized by, the financial trade and market regulators, as well as state and federal government agencies. It first introduced its solutions to the insurance industry, regulatory, trade and technology interests in 2004.