Saxo Bank bolsters CFD offering with reduced margin requirement solution and improved spreads for CFD Index Tracker

The new Intraday Margins offer clients greater flexibility during trading hours when liquidity is strongest in the underlying futures and cash markets, while a new spread offering reduces trading costs with up to 30% for the most popular index trackers. Saxo Bank, the trading and investment specialist, has today launched a reduced margin requirement solution […]

The new Intraday Margins offer clients greater flexibility during trading hours when liquidity is strongest in the underlying futures and cash markets, while a new spread offering reduces trading costs with up to 30% for the most popular index trackers.

Saxo Bank, the trading and investment specialist, has today launched a reduced margin requirement solution for its most popular CFD Index Trackers which provides greater flexibility during trading hours with most liquidity while maintaining margin at prudent levels. Initially, the reduced intraday margins will be available on selected CFD Index Trackers on main stock indices in Europe and the US such as US 500, EU 50, GERMANY 30, UK 100, FRANCE 40, SPAIN 35 and SWISS 20.

Saxo’s Intraday Margin will enable clients to reduce their margin requirements during the principal trading hours given the stronger liquidity in the underlying market, while maintaining margin requirements at responsible levels. The Intraday Margins, which accounts for half of the normal margin requirements, is applied during main trading hours and phased out when underlying cash markets are about to close. Going forward, Saxo intends to offer Intraday Margins on a wider range of CFDs.

At the same time, Saxo Bank introduces “fixed” spreads on CFD Index Trackers, applicable during main trading hours and in normal market conditions, meaning that clients will experience a reduction in trading cost of up to 30 % on the most popular CFD Index Trackers. This gives clients an improved trading experience and a high degree of certainty with regards to trading costs associated with entering and closing CFD Index Tracker positions. For the main US, European and Asia-Pacific Indices, the spreads are fixed at the minimum target spreads during the opening hours of the underlying cash market. “Fixed” spreads apply under normal market conditions and up to a certain trade size.

Commenting on the launch, Head Markets at Saxo Bank, Claus Nielsen, said: ”We have experienced strong client interest in our CFD Index Tracker offering, and we want to make sure that clients are able to trade flexibly and responsibly taking the liquidity available in the underlying futures and cash markets into account.

“In line with our aim to enable clients to access markets as efficiently as possible, our Intraday Margins for CFDs and improved spreads have been designed to provide clients with increased flexibility during the trading day while also ensuring appropriate levels of margin for prudent risk management” concluded Mr. Nielsen.

These new initiatives follow a series of other recent improvements to Saxo Bank’s CFD offering including active pricing on equity products and Direct Market Access on Single Stock CFDs.

Read this next

Retail FX

Malaysia regulator exposes OctaFX clone, shady FB profiles

Malaysia’s financial regulator today warned online investors about the risks of following investment tips made on social-media platforms.

Digital Assets

Crypto trading volume spikes at Swiss bourse amid FTX collapse

The shockwaves from the historic collapse of Sam Bankman-Fried’s crypto empire are still being felt across the industry, but some trading venues are actually doing better because of it.

Executive Moves

CMC Markets adds Camilla Boldracchi to institutional sales

UK’s biggest spread better, CMC Markets has promoted Camilla Boldracchi to take on an expanded role within its institutional sales desk.

Institutional FX

FXSpotStream reports $1.48 trillion in monthly volume for November

FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC, reported its operational metrics for November 2022, which moved higher on a yearly basis but reflected weak performance across executed trade volumes when weighed against the figures of the prior month.

Retail FX

Interactive Brokers’ client activity drops 30% YoY

Interactive Brokers LLC (NASDAQ:IBKR) saw 1.95 million daily average revenue trades, or DARTS, in November 2022 compared to 1.96 million transactions in the prior month.

Digital Assets

The rise of Crypto ETPs in traditional exchanges as crypto winter deepens

Institutional investors are increasingly looking at traditional regulated exchanges as their first route into digital assets amid market turmoil caused by the crypto winter and the collapse of several big names within the space, including FTX. Acuiti and Eurex surveyed 191 buy and sell-side firms on their views of the digital assets markets in order […]

Digital Assets

TP ICAP’s crypto arm receives FCA’s go-ahead

UK interdealer broker TP ICAP has received a regulatory go-ahead to launch its cryptocurrency services in the UK. The bid shows that the recent collapse of FTX exchange has done little to damp the interest of big names in running their own crypto business.

Industry News

Coin Signals founder to pay $2,847,743 after prison sentence over crypto Ponzi scam

The U. S. District Court for the Southern District of New York has ordered Jeremy Spence, founder of Coin Signals, to pay $2,847,743 in restitution to victims of a fraudulent virtual currency scheme.

Digital Assets

CME Group goes DeFi: Reference rates and real-time indices of Aave, Curve, Synthetix

“These rates are designed to provide traders, institutions and other users transparency and price discovery across a much broader range of tokens, allowing them to confidently and more accurately value cryptocurrency sector specific portfolios and manage price risk around various blockchain-based projects.”

<