Saxo Bank signs up to the FX Global Code of Conduct

Saxo Bank welcomes the initiative as crucial to strengthen the integrity of the FX market and bolsters it’s commitment with the introduction of Enhanced Disclosure

Saxo Bank, the online trading and investment specialist, signs up to the FX Global Code of Conduct (“the Code”), which is aimed at improving industry standards and promoting best practice among FX market participants. The Code is a result of an industry-wide initiative developed over two years through a partnership between central banks and FX market participants from 16 jurisdictions around the world.

The initiative aims to promote the integrity, trust and effective functioning of the global wholesale FX market which has suffered as a result of, but not limited to, trader misconduct, breaches of client confidentiality, failure to manage conflicts of interest and inappropriate order handling.

To emphasise support for openness and transparency Saxo Bank has taken the initiative to publish an Enhanced Disclosure (please see attached) that provides insight to Broker Incentive, Broker stability, Client Leverage and Performance.

Kim Fournais, CEO and co-founder of Saxo Bank, said: “We are proud to have been given the opportunity to participate as a member of the Bank of England’s FX Joint Standing Committee in reviewing and drafting this important and unprecedented industry-wide initiative.”

“We take pride in being at the forefront driving transparency and signing the Code as well as publishing the Enhanced Disclosure as a proof of the full alignment of interest between Saxo Bank and our clients. It is a means of promoting integrity and trust and is a point of orientation for clients when choosing a facilitator.”

The Code, which has been developed around six core principles crucial to the FX ecosystem, will ensure that trading of FX instruments is supported by appropriate elements of integrity and transparency. Furthermore, by placing proportionate levels of responsibility among market participants and providing a robust structure for future review and collaboration, the Code will engender greater confidence in the FX market and be crucial to re-building the trust between market participants and end clients.

Commenting on the Code, Kurt vom Scheidt, Global Head of FX, Saxo Bank, said: “One of the unique aspects of the Code is the fact that it covers the entire FX industry –sell-side firms, buy-side firms, trading platforms and venues – and that it is global in nature. This will ensure that standards are consistently applied across the industry, levelling the playing field among segments of market participants and restoring competition based on principles of transparency and integrity,”.

Saxo Bank believes that a well-functioning FX market is in the interest of all participants. The Code sets out the principles and best practices which provide a common set of guidance to the market, including areas where there recently have been degrees of uncertainty about which practices are deemed acceptable.

“While other markets have attempted similar self-regulating initiatives, we have never seen this level of co-ordination and commitment among market participants. Public adherence to the code is essential in ensuring that market participants can continue to scrutinise their peers’ practices and therefore ensure that bad practices and market abuse are rooted out.  The fact that evolution of the Code was driven by input from a healthy cross-section of market participants makes it well rounded and considered,” added vom Scheidt.

  • Read this next

    Retail FX

    Weekly Roundup: FX prop firms switch to cTrader, who moved $1.35B BTC?

    The foreign exchange and cryptocurrency markets are always active, and this past week was no exception. Stay ahead with a selection of essential stories and updates that matter most to market participants.

    Digital Assets

    Bitcoin breaks all records with a massive $1.347 billion transaction

    This transaction has surpassed previous records, setting a new benchmark for Bitcoin trades. Before this event, the largest Bitcoin transactions included a $1.1 billion trade in April 2020 involving 161,500 BTC, and other significant transactions ranging from $491 million to $1.033 billion throughout 2019 and 2020.

    Digital Assets

    Uniswap debuts Ethereum ‘uni.eth’ subdomains

    Decentralized exchange platform Uniswap has integrated Ethereum Name Service (ENS), allowing users to create human-readable domain names and cryptocurrency wallet addresses using .eth endings.

    Web3

    Magic Square Expands with TruePNL Acquisition

    Binance’s web3 app store, Magic Square, acquired token platform TruePNL in a cash deal this week for an undisclosed sum. The deal brings TruePNL’s infrastructure (excluding branding & token) under Magic Square’s wing. Initially seeking a partnership, Magic Square opted for a full acquisition.

    Crypto Insider

    The Future of Prediction Markets? Zeitgeist Launches Decentralized Court System

    Polkadot-powered prediction market protocol Zeitgeist has announced the launch of its latest innovation: a decentralized court system.

    Digital Assets

    Crypto exchange Kraken fires back at SEC lawsuit, claiming overreach

    Crypto exchange Kraken is pushing back against the U.S. Securities and Exchange Commission (SEC), seeking to toss out a lawsuit that accused the platform of operating without proper registration.

    Industry News

    Exness Named a Best Place to Work in 2024

     Global leader Exness, tops in retail trading volume, earns 2024 “Best Place to Work” award, cementing its employee-centric culture after three prior years of winning the Cyprus national title.

    Digital Assets

    Swan Bitcoin taps Bakkt for crypto offering in the US

    “We are thrilled to be taking this exciting step forward in our partnership with Swan. This is just the beginning of our collaboration, as we intend to explore further growth opportunities together in the future, including expansion into international markets.”

    Digital Assets

    Polkadot Awards Bifrost a 500,000 DOT Loan to Enhance Liquid Staking Adoption

    Bifrost, a leader in liquid staking solutions, has secured a 500,000 DOT loan from Polkadot’s treasury to expand the reach and utility of its vDOT product within the ecosystem.

    <