Saxo bank fx prime brokerage
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Saxo Prime will offer asset managers, retail brokers and proprietary trading firms low-latency algorithmic trading and co-location services through a partnership with MarketFactory.
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Browse by content type. Unlike most traditional Prime Brokers, by default, Saxo does not also provide its own FX pricing and liquidity to our Prime clients, making us a non-conflicted service provider that focuses on aligned client interests regarding optimized executions.
How important are pre-trade risk controls for Saxo Markets and how do you leverage them to allocate credit more freely and effectively? This is less inefficient for a client doing relatively few trades per day with minimal NOP usage, but is far from optimal when it comes to a high frequency trader, which could potentially transact thousands of trades a second.
Saxo places great importance on controlling risk on a pre-trade basis and has proven to be a thought leader in our industry, including due to our pioneering roll out of pre-trade risk management practices. Why do think Prime of Prime PoP brokerage has become so popular and what do you see as the key operational advantages that it offers?
Our tripod of FX PB services of course includes the essential service of credit intermediation, but also includes low-latency co-hosted connectivity, which then supports the third leg of provisioning customized liquidity that is optimized for market access for our clients, based on their own unique flow characteristics.
We are able to offer this service to clients in a scalable fashion because we have decades of experience tailoring liquidity pools and measuring execution effects for our own hedging purposes, ranging from multiple systematic and algorithmic approaches to manual trading. What is essential is to choose a well-capitalised PB with broad and deep access to liquidity. We offer clients true direct market access DMA , with connectivity options ranging from making markets directly into ECNs to taking via relationship feeds either on a pre-aggregated anonymous, or semi-disclosed basis.
Saxo is very well regarded and positioned in the top tier of the PoP market, being the innovators in providing clients with access to cutting edge risk management tools. Post-trade services such as the ability to clear large numbers of micro tickets, block trade allocation available to investment managers at no extra cost and real time account management are also key differentiators to look for when choosing a prime broker.
EOD files for reconciliation, daily swap rates, and LP flow split transparency reports—should also be considered. Beyond this, users can also have access to trade many other asset classes on the same platform. The depth and breadth of our offering is what makes Saxo Markets unique. Many large banks still feel they have compelling FX PB offerings. Do you think that competition between these banks for the big clients, and among the PoPs for the smaller clients, is more intense than that between the banks and the PoPs?
Clients now need to look at how far down the chain of PoP providers they want to go, and where they want their assets held.
That said, Saxo are also achieving success with larger clients that realize the benefit of additional value-added services that some PoPs can offer compared to other traditional relationships. Increasing numbers of firms are now looking at multi-asset trading. In what ways can a PoP make trading in multiple instruments more margin-efficient? One of the benefits of prime brokerage is the ability to net trades and exposures from multiple sources. When you add to that the ability to cross collateralize different financial instruments against each other within the same Saxo account, the advantages are clearly apparent.
Saxo Bank Group has always invested very significantly in new technology. Why is that so important in providing FX PB services and how does it help your firm to differentiate itself from competitors?
The vast majority of trading is now done electronically at very high speed. Being able to efficiently clear a huge number of trades whilst managing the risks in a controlled manner relies on having the latest technology.