中央财经大学4.9金融科技学术研讨会专访:GPP全球CEO Sargon Elias

2018-04-10 22:56:36 织梦安装使用
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Sargon Elias has had over 25 years’ experience infinancial markets and has been focused on forex margin trading business for thelast 15 years. He comes from a technology background having studies Computingin Manchester, UK in the late 1980s. Sargon worked for a number of Investmentbanks in London including JP Morgan working on trading systems for fixedincome, equities and derivatives.

In 1998he moved to the then new margin forex trading industry and joined then start-upcompany CMC Markets that was one of the first companies to provide forex andCFD trading over the internet. The new industry grew very rapidly and created anew segment of the forex market for retail traders. In 2006, Sargon was sent toNew Zealand to open a run the CMC Markets branch office there and has been livingin New Zealand ever since. He has seen the change in the industry since the GFCand the move to increasing regulations from governments.

He joinedGPP Markets in April 2016 to help establishing a new margin forex trading businessthat is fully regulated in New Zealand.


1998年,Sargon进入外汇保证金行业,加入了当时的初创公司CMC Markets。CMC Markets是第一批通过互联网提供外汇和CFD差价合约交易的公司之一。外汇行业发展强劲,外汇市场零售商进入了一个全新的阶段。2006年,Sargon被派往新西兰,全权负责CMC Markets新西兰业务,担任CMC Markets新西兰总部CEO。自那时起,Sargon一直居住在新西兰。他见证了行业自GFC以来的变化,也见证了政府对外汇行业越来越严格的监管。

2016年4月,Sargon加入GPP Markets,协助创建一个全新的、完全由新西兰监管的外汇保证金交易业务。


Q:A brief introduction of the development process of theWestern forex margin industry; your opinion about the whole forex industry; ananalysis on the future trend.



Margin forex industry as we know it today developed in the mid-1990s withthe development trading platforms and the internet. This changed the market andallowed many more people to participate, trading from home and from anywhere inthe world as they could see streaming prices and execute trades directly fromthose prices. Before this traders would either have to have access to expensivededicated price feeds from terminals provided by companies such as Reuters orthey would call a local broker and ask for a price. The online platformsallowed direct access and changed how people could access the market, making itmuch simpler, cheaper and faster. The development of the Contract forDifference (CFD) in the UK also helped to develop the margin trading model andthis created a big boost for online trading by retail investors in the early2000s which also helped bring forex to many more clients. Margin trading androlling spot contracts allowed client to trade without having to worry aboutthe complex and expensive settlement process as contracts would be rolledforward every night and they could simply take advantage of the difference inprice and allowed them to speculate on many of the worlds currencies as well asgold, oil, major indices and other commodities. It gave access for the littleman to markets that before could previously only be accessed by large globalbanks and brokers.



Many companies were created as it became easier to byplatforms such as MetaTrader and to get white label solutions for otherbrokers. The spreads narrowed with increased competition, for example in 2004the average spread for a major pair like GBPUSD was about 3-4 pips for retailclients.  Today this is between 0.3 and one pip, similarly for the minorpair such as NZDGBP it has gone from 8-12 pips to 1-3 pips.  Some brokersare even giving near zero spreads for major currency pairs as they fight formarket share.  The aim for all the brokers is scale, the bigger the volumetraded the bigger the profit as the technology allows many thousands of clientsto trade on one platform even at peak events this is no longer a problem forthe current server hardware systems.  Just like in the wholesale market,retail trading speeds have become more and more important.  Price latencyis an issue and is measure in milliseconds, with different strategies used byclients such as Virtual Private Servers VPS at data centres in London, New Yorkand Chicago to reduce the latency.


There were two main trends in recent years, 1. Automatedtrading systems or robo-trading also known as EA’s in MT4, where tradersprogram a system to trade automatically based on certain rules, normally basedon technical analysis and 2. social trading, where traders follow the trades ofothers that are successful or have a wide following. A separate trend has beenthe impact on counterparty trust after the GFC and the failure of brokers andloss of client funds, such as the well-known example of MF Global that usedclient funds for its own use, which should never be allowed and is prohibitedby all regulators. The most recent development has been the regulators catchingup with the trend and we have seen significant increases in regulations aroundthe world, which has meant a consolidation of brokers. But the interestingpoint as with many internet based services is that country based regulation hasdifficulty to regulate internet based services as they can be accessed fromanywhere. So we have seen many brokers register in low regulationjurisdictions, such as Cyprus, although that is changing with new Europeanregulations.

近年来有两个主要趋势。第一,自动交易系统或机器人交易。就像MT4的EA,其中交易者编程系统是基于某些规则和技术分析执行自动交易;第二,社区交易。交易者跟随交易成功率较高者或跟随具有众多追随者的交易者进行交易。GFC之后,一个单独的趋势是对交易双方信任、经纪商失败和客户资金流失的影响。拿MF Global的案例来说,挪用客户资金,这是绝对不允许的,是被所有监管机构明令禁止的。



Q:Comment on the advantages & disadvantages of MM, STP,ECN and MTF models.

Q:请对外汇交易中的MM,STP,ECN,MTF 模式的特点、利弊进行评论。


Market Maker (MM) model is the most common as it is easyfor the broker to provide and is the most flexible for clients, it is possibleto trade very small contracts as the broker can aggregate positions and onlyhedge one large net amount. However the disadvantage is that there may be aconflict between the broker and client and this can mean prices may bemanipulated. A loss of the client is a gain for the broker and so there may bea temptation to intervene in the system that is not to the benefit of theclient.


Straight Through Processing (STP), just means that thebroker passes the trades to another liquidity provider, to avoid the conflictof interest with the client and does not have its own dealing desk. This isseen by many traders as safer. The advantage is the broker has no conflict ofinterest. However, somebody has to take the position somewhere up stream andsometimes this is not always true, this is also sometimes known as No DealingDesk (NDD). The recent revocation of FXCM’s US license is an example where acompany said it was NDD but in fact was taking positions, so this is not alwaystrue even for bigger listed brokers.


ECN and MTF are very similar, ECN is the US name and MTFthe European Union name for electronic trading venues, these take feeds frommany banks and brokers and aggregate the best price and allow trading directly.These have advantages as the electronic exchange is independent from thetraders and market makers and use very fast matching technology. Howeversometimes the members are not equal and the some give big banks and otherparticipants the ability to do ‘last look’ which means that the matching is noteven. However most will operate fairly but compared to MM these will cost moreas the electronic exchange has to cover its own costs and make some profit, butare generally more transparent and fair.



Q:View an issue from an international perspective, what doyou think of CUFEsacademic seminar on 9th April? Comment on thesignificance of China’s influence to the world finance and economy.



Fintech is the abbreviation of finance + technology, whichthe use of large data, block chain and other Internet innovation technology forrisk control and platform management. Certainly Fintech can bypass many of thetraditional systems. For example we have seen a big change in payment systemsbypassing the old banking networks and payment networks, to make near instanttransfer possible across the world. This includes China where internettechnology has allowed a number of new solution providers to come to the tablealthough there are limitations because of the Chinese firewall and currencyrestrictions.

Fintech是finance +technology的缩写,即金融科技的意思。利用大数据、区块链等互联网创新技术进行风险控制和平台管理。Fintech可以绕过许多传统系统,例如,我们已经看到支付系统的一个重大变化:绕过了传统的银行网络和支付网络,使在全世界的即时转账成为可能,当然也包括中国。互联网技术允许一些新的供应商入驻,提供全新的解决方案。但由于防火墙和货币限制,在中国有所受限。

With the growth of China and its economy it has becomemore and more important in global finances, but is held back by restrictions oncapital movement and the restrictions of the RMB. It is clear that the Chinesegovernment wants to increase the participation of China and its institutionsand citizens in global financial markets but also wants to maintain control.The restrictions and controls mean that China is only a very small part of theglobal financial system and this will not change in the short or medium period.There are conflicting priorities and aims by the Chinese government which meansit is unlikely that the RMB will ever be allowed to completely free float,however there have been and will likely be more relaxation of controls and wewill see an increase in China in global financial markets over time, but thisnot linear and there may be moves back when there are economic stresses. Thetrue test of a free floating currency is that the government does not interveneeven through periods of stress. Most countries will intervene in their owncurrencies, but for many small countries their intervention is limited by thesize of the daily forex market, it is clear that the Chinese government wantsto maintain control and the restrictions allow it to do so.



For the foreseeable future the USD will remain the keycurrency and primary reserve currency and how most commodities are priced. Wesee this again and again when there are geopolitical events even when the USwould suffer from them, the USD will rise against other currencies. The currenttop four traded currencies pairs are;

EUR/USD:The euro and the U.S. dollar

USD/JPY:The U.S. dollar and the Japanese yen

GBP/USD:The British pound sterling and the U.S. dollar

USD/CHF:The U.S. dollar and the Swiss franc

And theseare unlikely to change for some time.









GPP全球CEO Sargon Elias将出席学术研讨会,这是他第一次来中国参加学术型会议。届时,Sargon将从国际视角出发,分析世界资本流动和中国未来金融走势,让中国投资者了解国际金融衍生品市场及发展趋势。