Institutional FX platform developer says "New World Order. Welcome to the machine" - FinanceFeeds

Institutional FX platform developer says “New World Order. Welcome to the machine”

Andrew Saks

Surely retail electronic trading is about self empowerment. If that’s the case, why aren’t we all becoming our own bank and having total control without centralized offices, regulators in suits and a system that dictates how things are? Richard Goers, an experienced platform developer and risk analyst makes a good point

The famous words of British progressive rock group Pink Floyd in the 1970s are perhaps more relevant now than ever.

With the Western world continually being subjected to its liberties and economic structure being bashed by politicians in the form of heavily policed lockdowns, it has become clearer than ever to entire populations that the way forward, other than emigrating to nations which are not the target of Chinese communist domination, is to go electronic and online.

Recent months have demonstrated this direction in numbers, and the numbers never lie. Retail FX companies have been making record profits, and existing client bases of most retail FX companies have been trading far more regularly than prior to the lockdowns, largely due to the return of volatility to the world markets, and the added matter of many traders not going to their offices or regular place of work, hence seeing that trading from home is a more sustainable method of making a living than their increasingly fragile workplaces.

This geopolitical situation is unprecedented. In the past, government tyranny has taken place on a national basis, rather than an international one, and those with the wherewithal and resources – and in some cases the lack of fear – to be able to emigrate to more free societies have done so.

The influx of Europeans to North America between 1870 and 1945 is enough to demonstrate exactly this. Many arrived brutalized and poverty stricken, but within a few years had seized the endless opportunity offered by the nation founded by seekers of personal freedom and fortune and made good, many via the financial sector which has made up a large part of New York’s economy for the past 300 years.

These days, the Western countries are all in it together, so which way is freedom? The internet, and electronic platforms which offer access to a true global market.

Richard Goers, an astute developer of institutional FX platforms based near Sydney, Australia shares this view.

Mr Goers has several decades of expertise in the FX industry, having recently served as a risk consultant to Asia Pacific focused brokerages based in Hong Kong, and supplied platforms to firms in the west and the Asia Pacific region for some time.

His perspective is that we should “Imagine a world where you dont need to trust anyone. No third party, no borders and in which we can use programmed rules. By doing this you remove humans from the transaction.”

We have seen Bitcoin rally in price recently, a matter on which FinanceFeeds has demonstrated the opinion that this false market is the road to ruin, and that most of these cryptocurrency-based endeavors are futile at best, and dangerous at worst.

Mr Goers explained to FinanceFeeds this morning that “My view is that Bitcoin is a sideshow, it is Ethereum that will run the decentralised world and could be used within the new banking standards.”

“Anyway, I have been reading your theology for some many years and side with your libertarian views, which are more Hayakian, and relating to Austrian hard money economics, I even started a Hedge Fund based on Austrian economics, me being a paid up member of the Von Mises Club” said Mr Goers.

“Therefore, to think that DeFi derivative exchanges can be decentralised that they are run through smart contracts, DAO governance structures seems way better than trusting your bank to do good as it is not in there DNA” said Mr Goers.

“Imagine a CFD-FX DEX being so decentralised it cannot be regulated, run by its members, not ‘suits’ – and even as a DAO, and AMM, not humans for the most part. That would be the ultimate liberty of the markets. Celsius for example, or any DeFi platform offers interest and loans at market rates, justifies by their business model, not from the dictates of central bankers. Therefore, there could be no more FCA, no more ASIC, SEC to protect the collective, and each individual becomes their own bank” – Richard Goers

Mr Goers then gave some interesting tips to watch. “Watch Synthetix and Injectiveprotocol, and even Celsius and YearnFinance, and perhaps AAVA and Uniswap. These could well pit themselves against large retail FX and CFD brokers such as Plus500. IG Group or any other centralised entity dictating the terms of the transaction.”

“How far can you take your personal liberty within the current structures? he asked.

“Decentralised Finance may be a pipe dream but it is a dream worth following” enthused Mr Goers.

“At the moment, I hink people are holding too many contradictory thoughts, wanting personal freedoms and yet justifying the current structures” said Mr Goers. “Imagine ‘open sourced protocols’ that allow me to create another Injective. Transactions would then run through and be governed by the rules of programmed smart contracts so I know the rules. This way, users’ money is not at risk as it would be held within the smart contract and their personal wallet. Even better, NO HUMANS in suits would be involved and then we have limitless liquidity in AMM.”

“I am agnostic about the coin, but I suggest that decentralized finance has bigger broader benefits to society that we are only waking up to as Ethereum is Layer 1, that allows development of DAPPS in Layer 2 and Layer 3 and so on” said Mr Goers. His view is to “Get on board, even if they know their enemy.”

Without doubt there is going to have to be a more comprehensive shift toward encompassing all aspects of the component system of retail financial services, including who the custodians of transactions, client funds and execution are, especially as there are few people in offices even within the financial world.

In the past, all infrastruture was centralized and employees had to go to the office in order to access systems. External access was forbidden, and regulatory reports could be pulled from internal systems only.

Now, bank staff are at home, regulators are at home, traders are at home, and the frameworks used in the past are closed down in empty offices.

If this is not the decentralization of the workforce, what is?

Perhaps now it is time for the decentralization of every aspect of trading infrastructure including owning one’s own bank in a distributed format.

This also gives employees and customers a free remit to live wherever they like, thus escaping tyranny whilst retaining their careers.

Now THAT’s self empowerment.

Read this next

Industry News

Citadel Securities dominates European FX, and is one of the most profitable businesses in the world

Non bank market makers are absolutely dominating the growth of FX order flow execution. Citadel Securities is now the largest internalizer in Europe by market share, a battle it is winning against Tier 1 banks alongside global leader XTX Markets. It is good to see the OTC sector holding its own.

Industry News

Playtech confirms it has been approached over the sale of Finalto

Finalto was described by the company as Playtech’s outstanding performer in H1 2020

Industry News

More greenwash: CME bends to the eco agenda by launching global emissions offset contract. Yawn….

CME Group has capitulated to the green agenda. Today, the company puts out tedious and jargonistic soundbites, saying that its new instruments will reduce emissions. Who will be interested and who will fall asleep?

Industry News

CQG Releases New PanXchange Widget on CQG Desktop for OTC and listed products

Seamlessly taking positions and managing risk across listed and OTC markets has to be the way forward for many brokers.

Industry News

The EU sets out its position

TP ICAP will not be allowed to temporarily service all of its EU customers from London as it had previously believed it could

Industry News

2021 is the year of the non-bank market maker in FX: Optiver leads the way on FXall

Clearly, the banks are being shown a clean pair of heels by the most advanced companies in the FX business. Let’s hope that this paves a new way forward for OTC counterparty relationships and that execution and settlement is now the channel for innovation.

Industry News

CMC Markets selects AWS to improve speed of product delivery

Instead of focusing on the undifferentiated heavy lifting of managing servers, by using AWS CMC Markets has freed up valuable development hours

Industry News

OANDA plays an ace against Australian OTC trading restrictions, goes for pro traders with 1:100 leverage

OANDA Corporation’s Australian division has launched an account with higher leverage for professional traders. During the regulatory reforms by ASIC, many Australian brokers began an attempt to lobby the regulator to accept different leverage rates for different levels of trader.

Industry News

Are US equity markets in a bubble?

88.88 % of all S&P 500 stocks are trading above their 200-day moving average