IEX revolution will restore trust in Wall Street December 23, 2015, CNBC.com By Michael Bontrager and Luke Zubrod “Our firm has spent the last six years responding to Dodd-Frank’s derivatives market regulations and it is our firm conclusion that the core problem in finance cannot be regulated away. To be sure, new regulatory guiderails are an essential response to the crisis. But there are limits to the power of government action in fixing the system’s most fundamental problem – the erosion of trust.” Commentary by Mike Bontrager and Luke Zubrod. Bontrager is the founder & CEO of Chatham Financial, a global risk management advisory and technology firm in the debt and derivatives markets. Zubrod leads the firm’s public policy efforts. Chatham has no financial interest in IEX. Read Complete Article

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It’s an all-too-familiar scenario: after an altercation between a civilian and a police officer, the department receives a complaint alleging officer misconduct or excessive use of force. The officer in question responds that the situation required that level of force. But without witnesses or a serendipitously placed security camera, it’s generally impossible to know for certain who is telling the truth, and mistrust between the citizenry and the officers sworn to protect them can fester. Given a number of complaints against his police officers, the Rialto, California police chief decided on a novel approach; he equipped half of the force with miniaturized video cameras to record their interactions with civilians. Although the police officers initially expressed misgivings, the program’s results were unmistakable – complaints against police officers fell by 88%, and police officers were 60% less likely to use force…

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During this Thanksgiving holiday, we at Chatham got to thinking about the things for which we are thankful. Family, friends, health – the list contained the usual suspects. But this Thanksgiving, we had another reason to be thankful as we dug into the independent findings of Martin Wheatley, Managing Director of the Conduct Business Unit at the Financial Services Authority (FSA) and active Chief Executive of the newly created Financial Conduct Authority. In September, Mr. Wheatley released to the public “The Wheatley Review of LIBOR: Final Report,” a detailed, ten-step plan designed to give guidance for a policy response aimed at preventing future abuses of LIBOR and other financial benchmarks. After reading the Wheatley Review, we are thankful that the LIBOR calculation process is getting an apparently much-needed revamping. The Scandal In July, Chatham brought to your attention the economic…

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