Best prime-of-prime broker: Saxo – FX Markets | Forex News

With its well-rounded offering and stable stability sheet, Saxo stood out as a trusted liquidity accomplice, regardless of market situations

Whereas sporadic volatility punctuated by low participation has created difficult market situations in recent times, Saxo has maintained its dedication to its FX shoppers. Going through uncertainty caused by geopolitical or macroeconomic occasions, the bank strove to present the best FX prime‑of‑prime (PoP) providers by additional enhancing its sources of liquidity, aggressive pricing and complete vary of financial devices.

Backed by the world’s largest tier one liquidity suppliers (LPs) and venues, Saxo goals to offer second-tier banks, brokers and wealth managers the best doable pricing on the Avenue. Saxo’s shoppers capitalise on the bank’s sweeping PoP offering, which offers market entry to identify, forwards, choices and swaps, along with money equities, fixed income, listed derivatives and over-the-counter swaps on numerous underlying property, together with the credit facilitation to trade these merchandise effectively. The bank gives versatile margin collateralisation by way of money or securities, and credit curiosity on unencumbered money deposits.

Saxo caters to institutional shoppers of all sizes. Giant shoppers significantly recognize the standard of the bank’s service and offering, whereas these which are too small to entry the providers of top-tier prime brokers prize the power of the bank’s stability sheet, akin to that of many conventional prime brokers.

Along with an A- credit ranking from S&P International Rankings, this was confirmed by the Danish Monetary Supervisory Authority when, in June 2023, it designated Saxo Financial institution as a systemically important financial establishment.

“We are proud to have built Saxo Bank into a solid institution over the past 30 years,” explains Kim Fournais, chief government and founder of Saxo. “We have achieved this by focusing on servicing our clients and partners well. This is testament to our strong and resilient business model, alongside the trust and confidence placed in us by our growing number of clients and partners globally, who trust us daily with their assets and cash, and use our platforms to trade the global capital markets.”

To realize a superior degree of service, the bank has regularly strengthened its PoP offering. In 2023, Saxo partnered with FairXchange, a supplier of liquidity management and transaction value evaluation, to amass high-quality real-time e-FX insights protecting knowledge on spreads, skews and shopper trading behaviours.

By eradicating ambiguities round stream valuations in discussions with shoppers and LPs, the dialogue and degree of trust and engagement between them has deepened, which has led to considerably improved pricing and a more refined liquidity offering for Saxo PoP shoppers.

Powered by its utility programming interface parts and platforms, Saxo’s technology stack permits its shoppers to course of considerably giant volumes and supply optimum liquidity allocation. The bank’s pre-trade credit risk controls and cross-collateralisation throughout liquidity sources, venues and suppliers cut back the risk of over-allocation of credit, which might be dangerous during market dislocations. This removes the need to carve out credit, permitting shoppers to make use of their full web open positions with any liquidity supplier.

“Saxo’s ultra-sophisticated technology stack can process up to 2.5 million trades a day in fast markets,” factors out James Dewdney-Herbert, affiliate director, institutional FX gross sales at Saxo.

He says that by offering entry to world LPs by way of main financial centres – London and New York – Saxo goals to offer the best tailor‑made liquidity, domestically priced and with low latency.

“We can ‘slice and dice’ liquidity based on client requirements, creating bespoke liquidity pools, and monitor quotes to optimise client fills. The dynamic limit allocation between data centres also means clients can optimise their limits in real time.”

Whereas managed liquidity could be the optimum answer for a lot of of Saxo’s shoppers, the firm additionally recognises that refined institutional shoppers with high FX liquidity necessities count on higher control of their relationships with executing brokers and liquidity venues. For this reason the bank has launched credit provision and clearing providers to facilitate shoppers who search the advantages of bilateral trading relationships, very similar to conventional credit-based FX prime brokerage providers.

“[Providing] our largest clients with disclosed, bilateral trading opportunities and access to major liquidity venues, together with our own managed liquidity, completes a compelling proposition where synergies of scale can be capitalised on by both parties,” concludes Dewdney-Herbert. “As clients in the industry mature, they want to take more control of their business.”

Saxo was named Finest prime-of-prime broker on the FX Markets e-FX Awards 2024.