VIDEOS: Dear friends. The current tumultuous markets help exceptional opportunities resurface. Yet we perceive it as showcase opportunities to highlight that alternative investments are a meaningful component to a savvy investor's portfolio. Our stable-performance programs make more sense than ever. Also, with the surging number of new investors embarking on our programs to snap up the market potential we kindly asked Dereck to walk you through our operations in a series of videos. Enjoy it and remember, together we stay strong.
31st MARCH 2023
What is the current status and what has happened since last update?
Since the beginning of 2023 we have been running intense tests on proprietary accounts at a sound regulated venue. Given the extremely difficult and unusual geopolitical situation, the preliminary results are satisfactory. In the meantime, important to mention, we have faced some unnecessary legal enquiries, too. We feel important to highlight the fact that all legal notices takes up enormous level of necessary capacity. We stand clear by stating we are firmly convinced that we will be able to deliver the desired outcome despite the pressure we face. The statement above also explains the reason for very narrow, strict and one-way communication.
Why we did not manage to fulfil the time outline from the previous update?
- legal hurdles: Various financial regulators globally understand that the deregulation led to the financial crisis in the past decades. In response to these events, Regulatory bodies and Governments keep implementing stricter rules and do maximum they are capable of to prevent similar situations from occurring again. These regulations include measures, namely for higher capital requirements and stronger enforcement mechanisms.
As a result, we can see that the stability has been improved significantly. We very much appreciate the measures to prevent money laundering or those protecting consumer personal information. However, for a company seeking above-average capital returns by trading in the financial markets, the increased costs and administration at the same time decrease the profitability of the business in general. In order to comply with the new regulatory measures, we have had to invest enormous amount of capital and energy to acquire additional compliance officers, operations and new updated systems. We always tend to be considered as a innovative venue that pursues new trading opportunities. The complex regulatory measures are in our view overly restrictive and place significant limits to our operations. The regulation is here also to protect the investor by limiting the entities that take on higher risk and pursue higher returns. Our business model has always been standing on the ground of higher risk appetite, thus we consider the recent rules as an impediment to our potential growth and profitability.
- technical shift: We are in the process of programming the proprietary platform that will replace the previous platform we had been using historically.
An inhouse trading platform will bring the improved performance and functionality, faster execution times and improved routing tools. The platform will also provide better trading efficiency by consolidating the trading activities and will be operated at reduced overall costs. The full implementation will however not be technically possible before Q4 2023.
What are the projections for the next quarter?
- We have successfully partnered up with a commodity trading venue based in Saint Vincent and the Grenadines. The entity works with highly regulated standards that allow us to start trading our proprietary account only. We are in the middle of intense discussion with two other entities based in United Kingdom and the Middle East. Both entities work as a custodian for HNW individuals and work closely with private asset management companies based in UAE, Australia and New Zealand and the EU. We hope to share more details in the coming months.
Long term plans for 2023 - 2024.
- Trading venue: Our goal is to obtain three to four stable partnerships. A Hedge Fund and Banks category will start hopefully by the end of 2023, HNW and the rest of the entities will follow up right after. The reason being the different scale of regulatory requirements it various asset classes among the spectre. A private law advisory company and a team of technology advisors have been hired to help us reach our plans as soon as possible.
Why we believe it is feasible?
- The internal discussions with our Compliance officers, Law advisors, operations and technology experts indicate that the internal goals are achievable and feasible.
Thank you for appreciating our gratitude for your patience along our journey to fixing all issues that have recently occurred.
16TH DECEMBER 2022
Dear partners, clients, and friends. In the light of the detrimental events in 2021 we approached several authorities we have been working with. The case is being worked on and we are now able to reveal a list of entities we approached. The aim is to solve the ongoing issue to satisfy all involved parties to the maximum extent possible. We believe all is in good hands and we are working hard to have everything clarified.
Cyber Security and Technology Crime Bureau
The Hong Kong Police Force is committed to combating technology crime. The Cyber Security and Technology Crime Bureau (CSTCB) is responsible for handling cyber security issues and carrying out technology crime investigations, computer forensic examinations and prevention of technology crime. CSTCB will also establish close liaison with local and overseas law enforcement agencies for combating cross-border technology crime and experience exchange.
In order to effectively combat increasingly sophisticated technology crimes and maintain a safe cyberspace for Hong Kong, the Technology Crime Division of the Commercial Crime Bureau (TCD CCB) has been upgraded to a new Crime Wing Bureau known as the Cyber Security and Technology Crime Bureau (CSTCB) since 1 January 2015.
CSTCB is charged with the primary responsibilities of maintaining the cyber security of Hong Kong and preventing and detecting technology crimes. The establishment of CSTCB would further enhance the Force’s capability in combating technology crimes and handling cyber security incidents.
Digitpol Hong Kong - Digital Forensics
Computer Forensics in Hong Kong, Digitpol’s Hong Kong office provides forensic services to recover forensic data from computers, portable devices and hard disk drives. We can create a full disk image in a forensic environment enabling the recovery of all data including deleted data.
Hong Kong Monetary Authority
The HKMA is the central banking institution of Hong Kong. Hong Kong’s AML/CFT regime comprises a robust legal framework,
effective law enforcement, rigorous preventive measures, international cooperation as well as education and publicity. Hong
Kong’s overall AML/CFT policy is set by a Central Coordinating Committee on AML/CFT (CCC) chaired by the Financial Secretary
and consisting of the relevant government bureaux and departments, law enforcement agencies and financial regulators. In addition to
AIs, the key stakeholders in Hong Kong’s AML/CFT regime also include other financial institutions, designated non-financial
businesses and professions, and their regulatory or self-regulatory bodies. ML and TF are crimes and the responsibility for investigation and
prosecution rests with law enforcement agencies including the Hong Kong Police Force, the Customs and Excise Department and the
Independent Commission Against Corruption. Financial institutions, including AIs, play an important role in supporting jurisdiction-wide
AML/CFT efforts by implementing AML/CFT Systems that help prevent criminals and terrorists exploiting the financial system;
keeping records of business relationships and transactions that may facilitate financial investigation of suspected ML/TF activities; and
collaborating with law enforcement agencies through the filing of suspicious transaction reports to the JFIU and information sharing to
detect, prevent and disrupt crime. The HKMA’s role is to supervise AIs in their roles as key stakeholders under Hong Kong’s AML/CFT regime, complying with legal and regulatory requirements, and effectively focusing on areas of higher ML/TF risk.
AML/CFT policy in Hong Kong is set by the CCC, chaired by the Financial Secretary, of which the HKMA is a member, together with
relevant Government bureaux, financial regulators and law enforcement agencies. The HKMA also cooperates closely with the
SFC, IA and CCE in the drafting and revision of the AML/CFT Guideline for financial institutions and in discussions of matters on
common interest, including cross-sector ML/TF risks. The HKMA and the other RAs also meet regularly in forums led by the Financial
Services and the Treasury Bureau. The HKMA also participates in regular discussions with relevant Government bureaux and departments and law enforcement agencies on areas such as the implementation of United Nations sanctions in Hong Kong and suspicious transaction reporting by AIs. Internationally, the HKMA participates in the FATF, the APG and the AML/CFT Expert Group of the Basel Committee on Banking Supervision. It also cooperates with authorities in other jurisdictions, including the Mainland and Macau via bilateral memoranda of understanding or other cooperation arrangements.
Enforcement and AML Department
To investigate and where appropriate take enforcement action under relevant Ordinances, supervise anti-money laundering and counter-terrorist financing systems and handle complaints.
Money launderers and terrorists engage in money laundering activities through the use of various techniques to disguise funds obtained from illegal activities including drug trafficking, corruption, tax evasion and fraud.
The HKMA supervises authorized institutions' (AIs) risk management systems for combating money laundering and terrorism financing, which follow international standards and practices, taking account of the risks to which the banking sector and individual AIs are exposed. Details of the HKMA's Supervisory Approach on Anti-Money Laundering and Counter-Financing of Terrorism (AML/CFT) and the role of AIs in Hong Kong's AML/CFT regime can be found in here (SPM AML-1 Supervisory Approach on Anti-Money Laundering and Counter-Financing of Terrorism).
On the positive note, we have been finalizing the partnership with the short list of our key technology providers and custodians. These entities are domiciled in Central America, Asia and Far East. We hope to reveal the details in the near future. Thank you
18TH AUGUST 2022
Dear partners and all concerned
The last year has been especially trying for us. Right after equity was hit hard in 7/2021 we made our analyses and set out a plan of recovery. It went rather well in terms of performance and stability. However, as outlined in March 2022 we proposed stopping our trading to tweak the execution regarding technology involved. The reasons were described before. Nonetheless, we were put under immense pressure to deliver results by a large number of clients. All is understandable, but in fact our concerns were true and the way our trades are executed must be radically changed to deliver the expected results. Our team is used to working under pressure, but many times trading is wildly misunderstood. The world is going through unprecedented changes – to put it simply: the history is being made now! Covid-19 was a truly wild ride which carried on in form of the war in Europe and intensified tension in Asia. Economic consequences are harsh and commodity prices have been erratic and many times just deviated for unnecessarily long periods. Trading strategies have to be heavily adjusted in order to protect equity and what’s more – to deliver performance levels which were present prior to 7/2021. This is absolutely crucial, and we are fully determined to work around the clock as always. In the past, we delivered outstanding results, but in today’s environment forcing trading no matter what is like putting a square peg in a round hole.
We aim to be more precise in terms of communication of our plans/goals as a simple and direct communication is key at this stage. Thus, direct points are to be made with strict deadlines.
End of August: termination of number of merchant relationships - each will communicate the matter directly.
By the end of October 2022: The decision has been made that only a small number of relationships will remain active. The aim is to work with the trading and banking entities domiciled and regulated in the US, EU and Asia. The advanced technology and lightning-fast execution with minimum slippage remain our key requirements. Additionally, we suggest trading one block of capital in the near future in our name to gain more advantages (economies of scale and ease of execution for one account only – fewer institutions involved).
Q1 2023: a proper start of the improved scheme. Coming back to our proven strategies full-on, the goal is to mend what was broken. Most of our total assets were lost either due to trading losses or revocation of the cooperation. Our current AUM has dropped significantly, and our main goal is to retrieve the trust of our former partners. We can only show our dedication with increased AUM. The solution behind the idea is to utilize all the resources available to accelerate reimbursements.
At the moment, there is an ongoing legal discussion of the compensation plans. We fully realize it is a lengthy process but it will be much easier for us to execute any sort of compensation at all. There has to be a further and deeper analysis of the specific process as different jurisdictions apply diverse laws (e.g. tax laws, AML, KYC requirements). If the proposed solutions get a green light, all partners will be requested to provide the details regarding their original investments, identification documents, bank details etc.
It is now time to introduce more focus to get back in the game.
Next update to be made as soon as possible. We hope to provide also insight into the ongoing investigation by the end of the year 2022.
16TH JUNE 2022
Apologies for being offline for long hours. Our hosting access has been compromised. We are still working hard on renewing everything. Currently, we are looking to switch the trading platforms we trade with. We hope the change goes smoothly. Some clients may change their brokerage accounts as some brokerages offer only MetaTrader 4/5. Looking forward to being back on track. Thank you for your trust although we understand many might be properly discontent - it is fully justified. Markets are going haywire and we will do our best to extract good profits from them.
20TH MARCH 2022
All is according to the plan. However, the invasion in Ukraine shook up several relationships amongst brokers and providers of technology and liquidity and banks. It is a complex network of partnerships that have worked smoothly but political and regulation influence took the world by surprise. The financial markets are no exception. We remain target-focused and despite the unfortunate events in 2021, we believe we set off in 2022 in the right direction.
As announced previously, the trading platform for orders-execution must change in order to be effective and to reach our goals within acceptable time frame. We are working hard on our custom solution and in the meantime, we have to switch to a platform different to MetaTrader. Another issue is that some brokers in certain jurisdictions (Cayman Islands, Belize, USA, Germany and a few others) have tied hands regarding AML guidance already. It will no longer be possible to execute the compensation plan in a desired way. Therefore, the trading at these brokers will cease by the end of March 2022 and the new venues will be offered for new account openings. The admin process should not be too difficult as well as moving the remaining funds. This will speed up the whole process while we stay away from hurdles such as AML and technology issues.
Thank you for your understanding. We value your trust. News to follow.
7TH MARCH 2022
The recent months have been very difficult for us. We committed to restoring all the damages and we are still working around the clock to bring things back on track. We relentlessly dedicated a great deal of time and energy and determination to the said reset. In general, the markets exhibited different behaviour during the Covid-19 onset and we witnessed a number of anomalies. Despite all of this, we managed to recover slowly but surely. Things are far from ideal, but the pace was there as promised. We remain true to our principals and believe success lies in small steady increments rather than taking big risks all at once.
The recent invasion to Ukraine is, first of all, unexpected, out of ordinary and majorly disheartening. The commodity markets jump around and show strange behaviour to say the least. Over the history, there have been many shocking events (whether sudden, prolonged etc.) but all in all, everything is somehow manageable. Although the war conflict jointly with Covid-19 pandemic makes for a cocktail that might be hard to swallow even for experienced traders, algo programmers or just investment managers. Put simply, things are not what they used to be, but we keep fighting, working hard and improving the successful system.
Economies are faced not only with shocks following from the war or Covid-19 as such but with political decisions which are born many times over a weekend and asset managers do not have any time for any preparation period whatsoever. One wakes up on Monday and the conditions on the market are way off compared to the last Friday. This is absolutely unacceptable, and it costs us and the clients a lot. We are preparing a notion and considering specific legal steps towards several persons related to such events.
We must seriously reconsider the used trading environment. As it is a known fact, the leading developer of financial trading software is linked to Russian individuals and since the announcement of sanctions against the Russian Federation, we have kept experiencing latency issues, disconnections with datacenters and the overall instability. There is a lot going on behind the platform itself and we suspect some technology or liquidity deals might have been jeopardized or plainly terminated due to sanctions. We have recently set the trading platform to low risk i.e. trading longer time frames to ensure that we were on the right track hence the low trading activity. We have crunched massive amounts of back-testing data (along with meticulously checking whether it corresponds with the real data). We run multiple strategies with larger orders on different commodities. Additionally, our system detects floating spreads that deviate abruptly at times.
Capital preservation is our utmost priority, and we stick to our long-term plan. Therefore, we are now considering moving away from the current household platform name and switching to API. This might mean an administrative nuisance, but we believe it is the right thing to do before it is too late. We are now in talks with several prime brokers and banks that might just provide this with very promising results. We are capable of delivering but external factors hamper our efforts. We will provide an update soon. Thank you.
10TH DECEMBER 2021
The year is drawing to the end, and we would like to provide some updates. We successfully launched the come-back programme under strict rules to which we stick such as no fees, proper testing before launching, due analyses of trading, and ensuring the improved risk-parameters are in place as to make sure the disastrous events in mid-2021 will never occur again. One cannot be ever too cautious and the eWorld is a fluid place. There’s never a 100% protection in anything people do, but we are vigilant more than ever. The plan is clear and the most of it is being implemented.
However, due to tightening regulation and also technology that is not entirely compatible as we would expect, some non-bank brokerages signal difficulties implementing our suggested scheme of fees, credits and so on. We totally understand this and we stand ready to support them but in some cases, if necessary, we will switch venues to cater for the needs of our clients as best as we can.
Our assets under management plummeted significantly. Such a massive drop was caused obviously by the equity drop at some venues which tie in with major players who are diligent and pre-emptively withdrew the committed funds to be on the safe side. We are optimistic our AUM will again pass half a billion USD in the coming year. Once we leave the half-throttle area in the next quarter hopefully and hit the full speed with trading, we will be back on track.
Also importantly, we are planning to implement new layers of trading strategies that are due to be tested throughout Q1 and gradually implemented in Q2-3 2022. This is to introduce various independent strategies with different timeframe and underlying asset focus to further deepen diversification.
We have seen good and bad times and 2021 has been not one of the good ones. We represent an asset class that displays almost zero correlation to the traditional asset classes such as stocks mainly, therefore it is recommended to consider it in the portfolios due to its benefits but the weight should not be overdone.
Galibier Capital Inc.
17TH SEPTEMBER 2021
While the COVID-19 pandemic hits our region hard again and inflation threatens the economies all around the world, we are happy to announce that our trading programs have been restarted. We have launched the first test trading activity at several liquidity providers where we observe positive results so far.
We remain positive that the full trading activity will commence throughout October across all deposit holders available.
Please note that our valued Partners will be approached directly in the coming weeks via dedicated communication channels in relation to cooperation details at various trading venues.
Thank you very much for your patience and trust. Situation may not be easy, but we are fully committed to turn it around.
Galibier Capital Inc.
16TH AUGUST 2021 – UPDATED
Thank you so much for your patience. Let us please provide the update regarding the recent developments. Our case is still ongoing as it was revealed that not only our company was affected. Unofficial news report shows larger counts of similar targets where reputation of many industries was heavily harmed. We do confirm that our company provides a great support to our internal technology providers who put all effort to localize the potential sources. It seems however that the results will take longer than expected. We promise that our valued partners will be informed as soon as we have any further news regarding the situation.
For those venues which have been significantly harmed, new trading program will be introduced. Brief description to follow:
/ no lockup period
/ no performance fee
/ no management fee
/ optimized leverage specifications
/ tightened risk parameters
/ wider range of traded instruments across all the spectrum available
Such trading strategy will be launched when all of the necessary legal steps have been finalized. Please be informed that due to extremely complex business and political environment, we have made the decision to move our internal operational addresses. Our partners will be informed about every step to be taken. The trading activity itself will be launched gradually based on the specific venue. At latest, we do expect the trading activity to be commenced at all venues during the month of October. By that time, all of the details will be presented. We have put all our effort to chase up the procedures, however we understand the process of restart will have to take longer.
At the moment, we are in the middle of discussion with all of our deposit holders about options we may have to regain the recent losses. We believe that the outcome of such discussions will be finalized by the mid September, thereafter the specific details may be presented. That is the reason why we would like to introduce more details by September 17th. For now however, we already know that existing clients with funded accounts will not have to take any further steps. Depending on the venue, new credentials might be generated. Existing clients with not funded accounts will fund their accounts and the trading will commence based on (Limited) Power of Attorney (or an analogous document) in the same allocation. Incoming clients will apply for their trading accounts and respective POAs and LPOAs will have to be signed – the usual process.
We remind the affected clients that they are free to request their trading statements at all brokers their accounts are with.
NOTE: We would like to confirm a special compensation scheme being drafted and discussed with our technology providers. The special conditions will be provided to accounts with loss exceeding 80% of the initial deposits, details will follow by September 17th. The compensation plan includes channeling the payable fees proportionately across traded accounts. This is a legal matter requiring deep AML analysis. We do our best to expediate the whole process so that the solution takes place as soon as possible.
We do truly believe that we will soon hit the upward road again.
Galibier Capital Inc.
COVID-19 SPREAD, UPDATE: We closely monitor the news surrounding COVID-19. We extend our wishes of speedy and stress-free recovery to all those infected and their families. We appreciate the measures taken responsibly by the most governments around the globe. Our operations remain intact and we carry on as usual. Our trading strategy thrives on volatility and we focus on the markets to stay true to our principles and mission to bring stable positive return to our clients. Thank you.
Galibier Capital Inc. is a Hong-Kong based team of professional commodity dealers with an extensive span of experience. Officially, the unified entity was formed in 2006 whereas the team had been forming since 2004. Our company consists of experts in various fields, we are a group of target-oriented individuals who profit from asymmetric information in the marketplace.
Our mailing address valid since September 1, 2017: Rm 607, Yen Sheng Centre, 64 Hoi Yen Rd., Kwun Tong, Hong Kong. Chater House remains on the documents unless stated otherwise.
Thank you for your understanding. Team Galibier Capital Inc.
Trading and investing carries a high level of risk, you could lose some or all of your investment. Trading commodities or any other financial instrument may not be suitable for all investors. Before deciding to trade, you should carefully consider your investment objectives, level of experience, and risk appetite. We accept no liability for any losses or damages you may incur —this means that you alone are responsible for your actions in any trading or investing activities. Therefore you should not invest money that you cannot afford to lose.