Question: How vulnerable is the global economy to a synchronised slowdown from both US and China? How does the rest of Asia, including Singapore, weather and navigate this environment? What type of policies must countries pursue to build resilience?
Global growth is on a gentle slide down, but is not heading for a hard landing.
- We have had two years of robust growth, in many parts of the world above trend.
- It is to be expected that global growth will moderate this year towards a more sustainable rate, and this moderation has already started.
- We expect global GDP to grow by 3.5% this year, only slightly slower than the 3.7% estimated for 2018, and higher than the average of 3.4% in the three years to 2016.
The US economy remains in good shape.
- The US is projected to grow by 2.4% in 2019, still above potential.
- The effects of the fiscal stimulus are not expected to fade until later this year.
- Employment growth remains healthy, and this will sustain household spending.
- Private investment is a question mark: the recent increase in political and policy uncertainty is a dampener, but ongoing deregulation will support increased capital outlays in some sectors.
China’s economy is moderating but is likely to stabilise at a more sustainable pace.
- China is facing three economic headwinds:
- the lagged effects of the drive to deleverage the economy;
- the maturing of the global manufacturing cycle; and
- the effects of the US trade tariffs – both the direct impact on production and the indirect effect on consumer and investor sentiment.
- But accommodative macroeconomic policies will help to avoid a sharp growth deceleration.
- Monetary policy has been loosened and we are already witnessing signs of a revival in credit creation.
- Fiscal policy is also providing support, boosted by infrastructure spending.
- China’s economy is expected to grow by 6.2% in 2019, down from 6.6% last year. The growth moderation is not trivial but nor is it alarming.
What is worrying about 2019 is not headline growth rates.
What is worrying is that downside risks have increased and policy buffers are limited in the advanced economies.
First, downside risks. Global economic policy uncertainty is probably at its highest since the Asian financial crisis 20 years ago.
- Trade tensions are an obvious source of uncertainty.
- Trade negotiations between the US and China have yet to produce an agreement.
- Recent signals are encouraging but the risk remains of a breakdown in talks and a further escalation of tariffs.
- This could in turn have knock-on effects on supply chains across Asia.
- And trade risks are not limited to US-China.
- US tariffs on automobile imports from the EU remains a distinct possibility. Automobiles are a significant chunk of global trade and supply chains.
- Europe is another source of potential risk.
- The key risk event is Brexit. There are few indications that an agreement between the UK and the EU can be reached before the 29 Mar separation deadline.
- Italy also bears watching. The economy is in recession. This is happening against the backdrop of continued high government debt and a banking system that has still not healed from the last crisis.
Second, limited policy buffers. Growth is moderating in the advanced economies with little policy space for stimulation.
- In Europe, the growth cycle is turning down while interest rates are still negative. The need for consolidation in public finances means limited scope for fiscal expansion.
- The US has more monetary policy buffer, but not much more. The fiscal bullet has already been fired.
- If the baseline growth forecasts that I mentioned earlier pan out, the limited policy buffers are less relevant. But if there is a sharper slowdown, there are few safety nets.
What does all this mean for Asia? Growth in Emerging Asia is expected to remain stable.
- On the downside, exports have moderated in line with the maturing of the global economic and IT cycles.
- On the positive side, domestic demand remains resilient, labour markets are buoyant, and the decline in oil prices should give a boost to economic activity.
- Financial conditions have loosened this year, as capital inflows resumed after significant outflows in 2018.
Apart from the fallout from the trade conflict between the US and China, the key risk in Emerging Asia is leverage.
- Leverage ratios have risen sharply in a number of countries in Asia – corporate leverage in some countries, household leverage in others.
- Excessive leverage can be a source of financial instability, particularly if global growth were to slow down significantly or interest rates to rise sharply.
- Policymakers have to strike a balance to ensure that measures to support growth do not add to financial excesses in the economy.
But Asia has strong buffers and is today more resilient to external shocks, compared to 10 or 20 years ago.
- Most countries in Emerging Asia:
- are running current account surpluses;
- have healthy FX reserves relative to imports and short-term external debts;
- have more flexible exchange rates; and
- strengthened macroprudential policy frameworks to cope with volatile capital flows.
As with the global economy, the Singapore economy is also moderating towards a more sustainable pace.
- The economy did well last year, growing by 3.2%.
- This year, external demand will be softer, reflecting slower global GDP growth and the maturing of the global tech cycle.
- Manufacturing and trade-related sectors will feel most of the external drag.
- Financial services is likely to continue to outpace the overall economy on the back of ongoing digital transformation. But growth will be slower than last year, reflecting weaker credit demand, especially from the region.
The official forecast is for GDP growth to be in the 1.5-3.5% range this year.
- Growth is likely to come in close to the mid-point of that range, maybe a touch lower.
- This is not a bad outcome. It will bring the level of GDP closer to its potential. There is no need to stimulate the economy.
If there is a sharper slowdown, Singapore’s healthy macroeconomic position gives it the resilience to absorb the shock. It also has the policy space to respond to mitigate the impact.
Question: Can ASEAN be a net beneficiary of the US-China trade tensions through production diversion/substitution effects, or is the income effect too large versus substitution effects?
The short answer is that it is too early to tell if ASEAN will be a net beneficiary of US-China trade tensions. The immediate impact is clearly negative: there are no winners.
There are two ways through which ASEAN countries could benefit from the US-China trade tensions: trade diversion in the short term and supply chain reconfiguration in the medium term.
- Trade diversion happens when the US and China import more from ASEAN and cut back on imports from each other as a result of the tariffs.
- Supply chain configuration happens when production networks shift away from China to ASEAN countries.
There appears to be some trade diversion to countries in Asia as a result of the US-China tariffs but this is not large and may not be sustained.
- Korea and Taiwan seem to have benefited as alternative suppliers of the intermediate and capital goods targeted by the US tariffs.
- Malaysia, Philippines, and Vietnam, also seem to have benefitted from trade diversion as shown by their relatively strong export growth to the US in tariff-hit products.
- But already these effects seem to be tapering off.
As for supply chain reconfiguration, one hears anecdotal stories of such shifts but nothing has been picked up in the data.
- A recent survey by AmCham China and AmCham Shanghai reported that almost one-fifth of the companies that responded had relocated or were considering to move China-based manufacturing facilities to Southeast Asia.
- It remains to be seen whether these plans are followed through. Few countries can match the scale that China provides.
- And so far, there has been no decisive pick-up in FDI flows into the ASEAN countries.
- This is not surprising. Shifting production facilities is costly and will not be undertaken lightly in response to short-term factors. It also takes time to shift these facilities.
- Most businesses are likely to take a wait-and-see attitude given that the US-China trade negotiations are ongoing.
If the negotiations break down and the tariffs turn out to be permanent, the impetus for firms to relocate their production bases to countries outside China would be stronger.
- In such a scenario, the US tariffs will expedite a process that has already begun as a result of rising labour costs in China vis-à-vis other regional economies.
- Some ASEAN countries may stand to gain as manufacturers seek alternative cheaper locations outside of China, and circumvent the tariffs at the same time.
- Which countries gain from this depends on who has comparative advantage in producing the affected goods and who can provide a favourable investment climate.
But the immediate impact is clear: ASEAN countries will be negatively impacted by the US-China trade conflict.
- The heightened uncertainty over trade is already beginning to erode business sentiment and dampen investment across the region.
- And to the extent that growth in China slows down as a result of the tariffs, it is likely to have a larger negative “income” effect on ASEAN than any positive substitution effect from trade diversion or supply chain reconfiguration.
- China is the largest, if not one of the largest, trading partner to every country in ASEAN. A slowdown in China will have a significant impact on growth in ASEAN.
In short, tariffs are a net negative to a region that has depended on open and free trade for its prosperity.
Question: Expectations about global central bank policies have been shifted towards a more dovish bias, notably Fed statements last month, and in the region, Reserve Bank of Australia shifting from a tightening to a neutral bias and Reserve Bank of India’s surprise rate cut. Given the uncertainties over global growth and benign inflation trends, do you see more central banks in the region following suit, including Singapore?
Central banks’ recent actions and pronouncements have been consistent with the state of their economies.
- Economic growth has peaked and is moderating. Inflation has edged up but remains benign. At the same time, downside risks to growth have increased.
- There is room to take a pause and watch how the data pans out.
- In short, central banks ranging from the US Fed to the ECB to the Bank of England are exercising more patience and flexibility.
The Fed’s decision to adopt a “wait-and-see approach regarding future policy changes” is of course the most significant expression of this new mood.
- It has helped to allay investor anxiety over the future pace of rate hikes and its impact on growth in both the US and global economies.
- It has also resulted in a significant easing of financial conditions globally, and helped lift sentiments in the near term.
- The impact on the real economy-in particular, investment-is expected to be modest.
- Ultra-easy monetary policy in the past decade has had limited effect on capital spending, which continues to be driven by real factors such as policy certainty, demographics, and productivity growth.
- I believe the Fed remains alert to risks on both sides: a sharper than expected slowdown in growth as well as an unexpected pick-up in inflation.
- And that it will be prepared to move in either direction.
The easing of global financial conditions arising from the Fed’s pause will provide Asia with some relief and policy space.
- Heightened volatility in capital flows and exchanges rates last year had led to a tightening of financial conditions across Asia.
- The pressures on the current account and exchange rates have receded following prompt measures by Asian countries to hike interest rates and moderate import-intensive fiscal spending.
- Now, the pause in US monetary policy tightening has eased global financial conditions and given Asian central banks more room to calibrate monetary policy to domestic inflation and growth considerations.
Still, central banks have to assess the balance of risks carefully. A premature loosening of monetary policy could risk undoing recent gains in restoring currency stability.
As for Singapore, monetary policy remains unchanged; the current settings for the trade-weighted exchange rate remain appropriate. What we will do in Apr is another matter, depending on the growth and inflation outlook then.
- As I said earlier, we expect GDP growth this year to come in close to the mid-point of the official forecast range of 1.5-3.5% per cent.
- This moderation in growth from last year will bring the economy closer to its potential path.
- Inflation continues to behave according to our expectations. MAS Core Inflation came in at 1.7% y-o-y last month.
- This is within MAS’ forecast range of 1.5 to 2.5 per cent for the full year, which was announced in the October 2018 Monetary Policy Statement.
The impact of the recently announced Budget does not change the outlook for growth or for inflation.
- Although the government expects to run a deficit in this Budget, the fiscal impulse – which measures the impact of actual spending that flows through the economy in a given year – will be neutral in FY2019.
- The measures announced in the Budget are expected to have a muted effect on core inflation this year and the next.
Question: The outlook for the Fed’s balance sheets has changed. Where do you see financial vulnerabilities brewing in the world, as we advance towards quantitative tightening?
There are two things worth keeping in mind with respect to the Fed’s balance sheet run-off.
First, the Fed has moved away from its previous guidance that the run-off will be on “autopilot.”
- The Fed has signalled that the balance sheet run-off will end sooner than earlier anticipated.
- It has also said it is prepared to alter the size and composition of its balance sheet if future economic conditions warrant such a move.
- This suggests that the withdrawal of central bank liquidity could be less than earlier envisaged.
Second, the Fed has not changed its policy of running down its balance sheet at a rate of up to US$50 billion a month.
- This means that the path for liquidity conditions remains on a tightening trajectory and long-term interest rates could back up higher.
- The notes of caution that central banks, regulators, and analysts have been sounding about the need for entities to manage down their leverage remain valid.
I believe systemic financial risk is contained – in the US as well as major financial markets.
- Leverage in the financial industry has come down significantly compared to before the global financial crisis.
- Capital and liquidity buffers in key financial institutions are stronger, thanks to the post-crisis regulatory reforms.
But pockets of financial vulnerability exist in many parts of world.
- They bear close watching as liquidity conditions gradually tighten.
The root cause of these vulnerabilities is leverage.
- The world as a whole is more indebted today than it was prior to the global financial crisis.
In the US, non-financial corporate debt has risen sharply, spurred by years of very low interest rates.
- The underwriting of some of this debt has been quite weak.
- f the business environment turns for the worse and cash flows dry up, corporate debt defaults could snowball.
- This is not likely to be a systemic problem, but it could create disruptions.
Leverage ratios have also risen sharply in several Asian economies – corporate leverage in some, household leverage in others.
- Corporate earnings have not gone up in tandem with the rise in leverage, signalling weaker repayment ability under interest rate stress.
- Households, which have taken on more leverage on the back of low interest rates, might be more vulnerable to shocks in housing prices.
- If economic growth were to slow down significantly or interest rates rise sharply, these high levels of leverage could set off financial stresses – again, not of a systemic nature but troublesome nonetheless.
The Commodity Futures Trading Commission (CFTC) today announced that a federal court in a CFTC enforcement action entered a preliminary injunction prohibiting defendant Kelvin O. Ramirez (Ramirez), of Houston, Texas from engaging in fraud, misappropriation of customer funds, and regulatory violations in connection with an off-exchange foreign currency (forex) scheme. The CFTC’s complaint charges that Ramirez defrauded more than 140 clients by falsely claiming he had millions of dollars in assets under management when he did not and there is no evidence of him trading. Instead, as alleged, he absconded with his clients’ money.
James McDonald, CFTC’s Director of Enforcement, said “This case shows the CFTC’s continued commitment to rooting out fraud in our markets, whether it flows through traditional avenues or new ones, like the social-media based scheme alleged here. As social media becomes more prevalent, we caution customers to perform appropriate due diligence regarding any investment solicitations they receive over those platforms.”
The preliminary injunction order, issued on January 29, also continued a freeze of Ramirez’s assets and preservation of records ordered by the court on January 15.
Specifically, the CFTC Complaint, filed on January 14, in the U.S. District Court for the Southern District of Texas, alleges that from as early as 2015 to the present, Ramirez defrauded more than 140 people by fraudulently soliciting them to (1) invest in commodity pools that purportedly trade in forex, (2) trade forex through accounts managed by Ramirez, and (3) subscribe to his forex trading education and signals service, then misappropriating the funds provided to him for these purposes. Ramirez allegedly lured his clients primarily through social media — including Instagram, WhatsApp, and similar platforms. Among other alleged misrepresentations, Ramirez’s solicitations touted his hundreds of thousands of dollars in weekly forex trading profits; a lavish lifestyle funded through his profits; his growing multi-million dollar personal bank balance; and a managed forex trading pool with millions of dollars in assets under management. Ramirez’s solicitations allegedly promised his clients return of their principal plus extravagant profits paid periodically during the investment term with virtually no warning of the risk associated with trading. As alleged, all of these representations were false, and Ramirez essentially stole his clients’ money.
Also as alleged in the Complaint, in operating his fraudulent business, Ramirez was required but failed to register as a Commodity Pool Operator and Commodity Trading Advisor and committed other related regulatory violations.
In its continuing litigation against Ramirez, the CFTC seeks restitution to defrauded clients, disgorgement of ill-gotten gains, civil monetary penalties, permanent registration and trading bans, and a permanent injunction against future violations of federal commodities laws, as charged.
The CFTC thanks and acknowledges the assistance of the St. Vincent and the Grenadines Financial Services Authority.
CFTC Division of Enforcement staff members responsible for this case are Daniel Jordan, Diana Dietrich, Michael Loconte, Erica Bodin and Rick Glaser.
CFTC’s Foreign Currency (Forex) Fraud Advisory
The CFTC has issued several customer protection Fraud Advisories that provide the warning signs of fraud, including the Foreign Currency Trading (Forex) Fraud Advisory, which states that the CFTC has witnessed a sharp rise in Forex trading scams in recent years and helps customers identify this potential fraud.
Customers of Australian financial services company JB Prime have gained access to CQG’s multi-asset offering, including global equities, contracts for difference (CFDs), Foreign Exchange (FX), and Commodities with a new partnership between both firms.
CQG‘s high-performance solutions for trading will be available to JB Prime, which offers full-service brokerage, managed discretionary accounts and self-directed trading opportunities to institutional and individual clients across Australia, the UK, and Asia.
Leighton Andrew, Managing Director of APAC at CQG, commented: “It’s an important milestone for CQG to deliver a high-end, multi-asset offering, providing a seamless experience for global customers trading a diverse portfolio from a single account. The partnership with JB Prime gives customers new and broader trading opportunities.”
Daren Markisic, Chief Executive Officer at JB Prime, said: “A professional multi-asset platform is what the marketplace has been demanding for over a decade. CQG offers, in addition to a robust front-end platform, market analysis and news, charting and order management across the futures and options space, on a global basis. Now, together with the technology developed by JB Prime, traders have access to trade Futures, Options, FX, CFDs and Equities globally, and all from the one account. That technology offering – coupled together with our 24-hour full-service operation which offers training and support, research and reports, as well as professional order management – places JB Prime as a premier broker to fill the needs of all traders across various asset classes.”
The US-based global forex brokerage firm, FXCM has enhanced its client product offering and trading experience by adding Trading Central, a provider of investment research and financial market commentary.
As per the press release by the company, FXCM has teamed up with Trading Central to help it to enrich its HTML 5 web platform, Trading Station Web 2.0. The integration will help clients to receive expert views and institutional grade trading strategies, including helping clients confirm their own views of potential risk/reward opportunities in the financial markets.
Trading Central develop solutions for multiple platforms including MT4 and offers its clients with access to the daily newsletter and other features via Trading Central’s online portal and live via FXCM’s terminal when traders are logged in. Trading Central has offices spread across the US and it analyzes over 850,000 trading instruments.
According to Brendan Callan, CEO of FXCM Group:
“This integration gives our traders seamless access to Trading Central’s analysis, We want to provide traders all the tools possible to allow them to be smarter and more successful in their trading.”
Alain Pellier, CEO at Trading Central also added:
“We’ve spent the last 20 years empowering investors to form educated trade decisions by providing them with actionable research they can trust. We’ve been a proud partner of FXCM since 2005 and are confident that their new integration of our analytics will enable even more of today’s investors to participate in financial markets.”
FXCM recently expanded its offering to cryptocurrencies and also offers CFDs on the Ethereum, for all of its trading accounts. It introduced the new offering earlier last year began testing the service with its already installed Bitcoin offering.
CME Group, the world’s leading and most diverse derivatives marketplace, announced that Citi and Eaton Vance Management began clearing FX Cash-Settled Forwards at CME Group. CME cleared two Euro / US dollar trades on January 15, 2019.
“CME Group is pleased to clear our first cash-settled forwards, which provide a new capital-efficient way for our customers to trade G10 foreign exchange,” said Sean Tully, CME Group Global Head of Financial and OTC Products. “This first cash-settled trade, combined with the recent increase in our Non-Deliverable Forward clearing volume in late 2018, allows us to work with our clients, clearing members and liquidity providers to help customers mitigate their risks through cleared solutions.”
“Citi is excited to execute and clear the first CME-cleared cash-settled forwards with Eaton Vance Management, an industry milestone,” said Christopher Perkins, Global Head, OTC Clearing and FX Prime Brokerage at Citi. “With uncleared margin rules impacting buyside clients over the next two years, Citi is excited to leverage our leadership in the FX PB and clearing space to help clients execute and clear their NDFs and CSFs at CME.”
“Eaton Vance Management strives to reduce the total cost of trading for our investors,” said Michael O’Brien, Head of Global Trading at Eaton Vance Management. “We are big supporters of central clearing and now is the time for the FX marketplace to make buy-side clearing of CSFs and NDFs a reality.”
CME Group offers clearing for 26 currency pairs of FX cash-settled forwards and 11 pairs of non-deliverable forwards.
CME Group offers the leading FX futures exchange globally with more than $91 billion average daily volume (ADV) across listed FX futures and options year to date, and more than $260 billion of open interest.
For more information, please visit: http://www.cmegroup.com/trading/fx/otc.html.
oneZero Financial Systems has partnered with Global Market Index (GMI UK) to help the FX trading company distribute FX, CFD and cryptocurrency liquidity to oneZero’s network of over 200 makers and takers, oneZero’s EcoSystem.
Andrew Ralich, Chief Executive Officer of oneZero Financial Systems, commented:
“The addition of GMI UK to oneZero’s EcoSystem expands our global institutional client base. We are happy to integrate their API into our distribution network, so EcoSystem takers can have access to a new source for FX, CFD and cryptocurrency trading.”
The UK FCA regulated institutional broker has been awarded with a wide range of honors among its trading industry peers, including best IB support broker, liquidity provider, trading environment, trading platform, introducing broker service plan, forex broker, fastest growing broker, white label service provider, and EA trading platform.
Chis Hossain, Global Head of Institutional Sales – eFX & CFDs at Global Market Index, said: “We are excited to distribute liquidity to oneZero’s large network of retail brokers, asset managers and hedge funds as an EcoSystem partner.”
In late December 2018, Global Markets Index Ltd (GMI UK) partnered with Gold-i to make its multi-asset liquidity accessible to Gold-i’s global client base. The GMI brand was established in 2009 as a provider of highly customised and sophisticated technology and liquidity solutions for institutional clients such as banks, hedge funds, family offices, brokers and high net-worth professional clients.
oneZero, a global leader in innovative institutional and retail FX liquidity and technology solutions, has been announcing new additions to its Ecosystem with great frequency. In 2018, CFH Clearing joined the hub to offer local liquidity from New York (NY4) to brokers and banks.
The oneZero Ecoystem has a number of high profile partners including Alpha Capital Markets, AxiCorp, Broctagon Prime, CFH, CMC Markets, Go Markets, Invast Australia, IS Prime, JFD Prime, LMAX Exchange, Pepperstone, Sucden Financial, Swissquote, Tickmill, and TopFX.
CFH Clearing is part of Playtech’s financial division, TradeTech Group, ever since the $120 million acquisition in 2016. The firm claims to have more than 600 institutional clients in more than 80 countries.
After ending the year 2018 with mixed results, Tokyo Financial Exchange (TFX) on Friday has released its January Fx volume figures, reporting strong growth in the first month of the year.
The combined trading volume of all TFX products during the month came in at 3,318,379 contracts with average daily volumes at 151,684 contracts, which is 5.5 per cent higher when measured against the December 2018 metrics and 3.8 per cent higher when compared to January of 2018.
Breaking down the total volume figures, the total trading volume for the foreign exchange daily futures contract (Click365) is 2,831,223 contracts, with an average daily trading volume of 128,693 contracts.
The total interest rate futures contract (three-month Euro-Yen) traded in January 2018 was 117,834 contracts with average daily volumes coming in at 6,202 contracts. When compared to the previous month, the total trading volume is 10.7 per cent lower from 131,931 contracts in December 2018 but is 21.5 per cent higher compared to January 2018 volumes.
The trading volumes for FX daily futures contracts jumped 17.4 per cent month-on-month, and on a yearly comparison, it is 14 per cent higher from January 2018.
The Euro/USD currency pair witnessed the biggest month on month increase of 78.8 per cent with 71,107 contracts during the month, and the AUD/JPY currency pair recorded the biggest yearly gain of 149.4 per cent.
The total trading volume in the equity index daily futures contracts (Click Kabu 365) was 369,322 contracts, with average daily trading volume figures at 16,789 contracts, which is down by 38.6 per cent on monthly comparison and 40.2 per cent lower on yearly comparison.
Traiana, a leading infrastructure service which provides trade life-cycle and risk management solutions, today announced that it has provided direct central clearing connectivity to the Hong Kong Exchanges (HKEXs) and Clearing’s OTC Clearing Hong Kong (OTC Clear).
Market participants can now access HKEXs OTC Clear service to clear USD/CNH and USD/HKD FX forward and swaps, vTraiana, a leading infrastructure service which provides trade life-cycle and risk management solutions, today announced that it has provided direct central clearing connectivity to the Hong Kong Exchanges (HKEXs) and Clearing’s OTC Clearing Hong Kong (OTC Clear).ia Traiana’s Clearing Hub (CCP Connect), which provides affirmation, matching and trade processing capabilities.
HKEXs OTC Clear Deliverable FX service can be used to mitigate settlement risk which arises when payments and receipts of different currencies occur at different intervals during a standard bilateral settlement process. The service can also be used to offset settlement exposure with its clearing house cross currency swaps service.
Member banks are now able to clear deliverable FX trades, irrespective of how they were executed, using one of Traiana’s many connectivity and workflow options. Existing Traiana clients and electronic trading venues can enable the HKEX clearing workflow as an add-on to their existing Traiana FX post-trade processing services.
“We are very happy to be working with Traiana,” said Jacky Mak, Head of OTC and FIC Business Development in HKEX’s Clearing Division. “It enhances our ability to connect with the growing number of market participants interested in HKEX’s broad range of services including RMB-related services.”
“As the number of firms looking to voluntary clear FX instruments continues to rise, central clearing connectivity is becoming more and more important to our client base,” said CME Head of Optimization Asia, Guy Rowcliffe. “Our partnership with HKEX, provides the market with an innovative initiative which can be used to address a number of challenges associated with standard bi-lateral trade lifecycle management.”
Traiana is a part of CME Group.
According to the update, Fiona Cao has joined the firm in January 2019. Before this, she was employed with FollowMe Limited, a social community platform for finance and investment as Chief Marketing Officer for almost 1.5 years and was based in Shanghai.
Cao has extensive knowledge and experience of the FX industry and has worked in different capacities with several FX brokers. She had worked with TradeFXL/Markets.com as CN Marketing Director for almost two years from Feb 2015 to Oct. 2016. Prior to this, she had worked with Alpari (UK) Ltd for less than a year as CN Marketing Director.
In her own words, she is an “experienced Chief Marketing Officer with a demonstrated history of working in the internet industry. Skilled in Marketing Management, Crisis Management, Risk Management, Integrated Marketing, andBusiness Development.”
She has also been a co-founder at Follow me Education. She graduated with a BA. in Developmental and Child Psychology, Education from Shanghai Normal University.
Tezos Foundation Strengthens its Senior Management Team with Three New Hires
The company has appointed Attorney at Law Ulrich Sauter, as General Counsel of the Tezos Foundation, investment executive Eelco Fiole as Chief Financial Officer, and tech entrepreneur Lily Liu as an advisor to the board of the Foundation.
Ulrich Sauter has more than two decades of experience in the financial and legal industries and is currently employed as counsel for Naegeli & Partners Attorneys at Law Ltd.
Eelco Fiole is also an experienced market professional with over two decades of experience, and he is the sole managing partner and co-founder of Alpha Governance Partners.
Lily Liu has been on the advisory board since November of last year and is a PE professional and blockchain expert. She has co-founded Earn.com which was later acquired by Coinbase last year.
Ryan Jesperson, President of the Tezos Foundation commented on the new appointments:
“With the appointment of two senior executives, the Foundation is taking an important step forward by strengthening its internal expertise and capabilities. We look forward to having Ulrich Sauter, Eelco Fiole and Lily Liu working with the Foundation and bringing crucial governance, financial and industry-specific experience.”
Eelco Fiole also commented on his appointment:
“Observing the increasing maturity and institutionalization in the blockchain space, Tezos is excellently positioned to be a leading model for robust governance, supporting cutting-edge technological development and protocol adoption globally.”