Which way the market goes on as people are trading ultimately came for use of
volumes. And how exactly and how you're doing in
this current febrile atmosphere. Well first of all I have to correct you
a little bit there because actually it's quite important for us that that their
clients are doing well because that's that's the key to long term success.
Clearly volatility has increased which which is good for me.
I would say more risk prone traders where long term investors are more risk
all for. Altogether.
I think it's very very interesting times.
Definitely a major change for in the past 40 years in a world with huge huge
debt and now seeing rising inflation rising interest rates.
And I'm sure we're we're going to see a lot more volatility to come.
Yes. You may tell us a bit more flesh out a
little bit more in terms of what you're hearing from your clients right now.
You know given just we haven't seen inflation like this for more than a
decade how do you think confidence is among your clients and people you do
business with now. I think in general people are obviously
quite confused and I think central bankers are quite confused.
I think many people are very worried about the outlook here.
And in general I think people are obviously looking at when you get into
the market again. I think it is now time to really think
much more macro meaning also a much more multi asset.
And what we've seen is really that the interest rates have come up hence bunch
been coming down. And same thing for equities.
And that obviously also includes a lot of opportunity.
And on our side we don't think that's done at all on the country where we we
see a lot more of that to come in in the future.
So I think overall people are obviously worried about the outlook.
But but also looking at the different asset classes that's going to be very
important in the future. Yeah that's exactly what's going to talk
about given that. Well sex is grown is you know it's
online trading presence as the last good since 1992.
You've got so many more asset classes that people like these trades in this
current Zynga guy. So Spirit of the Times is what's going
on globally economically and market wise.
What are you seeing in terms of where people are trading.
Is it becoming more and defensive. Is becoming more about wealth
preservation currently rather than actually building more wealth.
Yeah yeah I think for sure because these are times of huge uncertainty and as I
mentioned before the world has never seen higher debt levels than what we see
now. And that combined with high interest
rates obviously is a dangerous cocktail. And so right now it seems like there was
a big bear rally. And we think that that may be over now.
And I think that people also they should think about not only being long only
there's been a lot of easy money there and in everything from equities to fixed
income to cryptos and and you know I think maybe maybe now it's about looking
much more on on on diversifying into different currencies actually maybe even
buying insurance in the market. And and hence buying put options.
So I think it's a it's a very different strategy that would be successful in the
years to come. Then what.
What we've seen since the great financial crisis where we've seen an
unprecedented bull market which obviously it has ISE.
We've seen declines in the last period. But we actually think it's maybe just
the tip of the iceberg. What does this mean for.
For fees or prices overall Kim. I mean if we start to see more of these
kind of online trading activity continue to pick up our low prices going to be
something that is just the bare minimum now.
Well I think that that's definitely a a search for yield which is also changing
now as we're beginning to see some interest rates coming up and I think a
lot in this industry has been for a long time about lower prices.
People have or some people have offered free trading and then they've been
selling the clients flow. So but payment for order flow is not
popular. It's illegal in Europe.
It's getting potentially legal in U.S. and and even high here and in Asia.
I think things are changing. And also having just a platform where
you can be kind of along only or by cryptos I don't think it's going to cut
it. So so really it is about trading the
macro cycle of the economy. And you know obviously pricing in terms
of assets will always be very very important in terms of the cost to to
trade. But I think what's even more important
now is actually to have a proper diversified approach to this.
And also we see some macro trends which which are quite clear.
I mean the energy is one but I think in general stocks and funds I think are
noble. So.
So people need to think much more broadly about this and really figure out
what what's the right risk appetite. The time horizon capital allocation
model for them. Hence you need to be able to access a
multi asset which of course is a very very important thing for sexual bank and
has been since the inception. So really the notion of trading a global
macro environment is very very important.
And that hasn't really been necessary for for the past 10 years or so because
everything has just been going up up up. And I think that's pretty obviously the
Hang Seng now. That brings me nicely just to talk about
with that in mind everything been going up and up.
It must have made your life much easier to sell your product and increase your
footprint in this part of the world. It becomes a harder sell now or does it.
So what really are you planning to do in this region.
Well I think first of all I think globally and not only in this region it
is about education. It is about risk management.
And as you mentioned you know it's been kind of easy just to buy and hold a lot
of different asset classes. And I think that of course is not
necessarily the strategy that's going to be successful for the future.
Hence I think that that people understanding really more complex
products derivatives and so forth but also spreading the risk.
So here as well as in other areas I think it's very much about educating
people in risk management and do so by diversification as well as also trying
to to really have a prudent approach to leverage and so forth.
So I mean shorter term obviously that can be more complex in a market that's
collapsing after people have been used to it going up and up.
But I think actually holds a lot of opportunity.
And I think for many new entrants into the market also many young people I
think it's actually it is important that people also understand that it's not
always going on. It's not just kind of growing into
heaven. So I think to some extent it's it's
healthy. Of course it's kind of unpleasant
because people are getting a major wake up call.
But I honestly believe it's a big opportunity for market participants as
well. And also you cannot just have markets
that keep going out because that's negative interest rates.
And we talked about inflation for for more than one and a half year.
And I think unfortunately it's unfolding now big time.
So I don't think it's a big surprise. But I think it's important that everyone
understands that that you know sometimes it's reforms and incentive structures
that are more important than just cheap money and debt building basically
because that's what happened. And that's not good for for a lot of
things a long time. And and Ken in terms of markets in Asia
where are you looking to actually build that footprint.
I know you don't really have a banking license in China yet but as their plans
to do so what markets excite you. Well I think clearly our Asian hub is
here in Singapore. We are in Tokyo.
We are in Australia. We are in Hong Kong.
When Shanghai and I think all these markets are about a huge huge
opportunity we are we are still working to to find a way to get license in
China. We have set up a technology company
sexual fintech in Chongqing and China. And I think China obviously this is a
very very big opportunity. And right now I think it's really to
navigate the whole thing and also finding good partners out here.