By using a label to make a clear distinction between safe and unsafe, investing and blindly gambling as well as unrigged and rigged markets, the Transparency Label Initiative brings C.A.L.M. to the global financial system.
- “C” stands for the confidence market participants exhibit as a result of using the clarity provided by valuation transparency to Trust, but Verify.
- “A” stands for the application of discipline on the buy-side so that it enforces disclosure that results in valuation transparency.
- “L” stands for the losses on investments investors’ accept rather than expecting a bailout. Investors’ know where there is valuation transparency they can independently assess the disclosed information and know what they own or are thinking of buying.
- “M” stands for the market discipline that prevents financial crises and results from investors exercising self-discipline and limiting the size of their individual investments to what they can afford to lose given the risk of each investment.