Leading Financial Regulator’s White Paper Recognizes New Marketcore Technology
Resolution of mortgage market issues and profitable “counter” to information asymmetry described
FAIRFIELD, Conn., Aug. 14, 2012 / PRNewswire
Marketcore, Inc. announced that the National Association of Insurance Commissioners, through its Center for Insurance Policy and Research (CIPR), yesterday published a White Paper citing the inventive methods of Marketcore as a solution to address “risk assessment of complex financial products…[and] to counter the information asymmetry advantage of deal originators.” The authors acknowledged Marketcore’s Transaction Credits™ as “the tool used to provide incentives to originators, aggregators and investors to encourage them to use the system and to report events related to the value of underlying mortgages.” The White Paper suggests a private sector solution where, “an alliance of buyers, regulators and the general public can insist on greater transparency and effective disclosure of sufficient information to allow residential mortgaged-backed securities investors and regulators to have greater confidence in the market.”
David M. Rowe, the noted risk manager and journalist, was a contributing author to the CIPR White Paper. He first encountered the company’s invention while a participant in the Office of Financial Research Discussion Group and subsequently described it as a tool for creating “Market-driven Transparency.” He commented, “While considerable thought and legislative effort have been devoted to revising the regulatory framework, all such initiatives inevitably encounter passive resistance on the part of the industry. I believe these efforts need to be supplemented by a system of positive private incentives at all levels, from mortgage borrowers to institutional investors, to reward continuing disclosure of the details necessary for effective security analysis. The official credit rating agencies clearly failed to warn investors of the potential dangers inherent in some segments of the securitized mortgage market. This leaves them in no position to be the instrument of its revival. Only a massive infusion of transparency driven by positive economic incentives, which Marketcore’s invention induces, will move us beyond the current reliance on government guarantees to create the credit flows necessary for a robust recovery in the housing market.”
Byron Vielehr, president of Dun & Bradstreet, NA and a member of Marketcore’s board of directors, added, “The Marketcore IP has the potential to radically improve the transparency and efficiency of many financial instruments and markets. It also has the benefit of being relatively easy to implement at scale and contains embedded inducements for market participants.”
Michael Erlanger, Managing Principal of Marketcore, said, “Our company’s inventions, memorialized in a suite of issued patents and pending filings, are just now being acknowledged as a uniquely American innovation, capable of resolving the systemic issues that have undermined confidence in financial markets. Importantly, ours is a method that involves all market participants in an encompassing approach based on disclosure of critical financial information. Information asymmetries helped create this on-going global financial crisis, and we believe that their elimination is an essential element in making markets more efficient. Marketcore’s innovations foster a system in which all participants profit from voluntarily making risk-detailing disclosures that increase asset values and facilitate market functions. In recent weeks our work has received national and international citations for a range of applications from systemic risk detection to credit market functions and now to valuations of complex risk instruments, particularly mortgage-backed securities. We are excited to be part of a forward- looking process that aligns all finance and risk management with 21st century technology.”
About Marketcore: Founded in 2000, Marketcore is a privately held company based in Connecticut. The Company focuses on creating tools with which to improve operating efficiencies, liquidity, value enhancement and risk assessment for the financial services industry.
To learn more, please visit http://www.marketcore.com.
Safe Harbor Statement
This release includes forward-looking statements on our current expectations and projections about future events. In some cases forward-looking statements can be identified by terminology such as “may,” “should,” “potential,” “continue,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “estimates,” and similar expressions. These statements are based upon current beliefs, expectations and assumptions and are subject to a number of risks and uncertainties, many of which are difficult to predict and include statements relating to our invention and proprietary technology, the importance to markets of eliminating information asymmetries, the impact of CIPR White Paper on the company and the ability of Marketcore’s methods to be the start of a cure in which everyone participates.
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