Saxo Bank to introduce collateral profiles for stocks and bonds, separate to margin profiles

Maria Nikolova

Saxo is separating the configuration of stock and bond collateral factors from the current margin requirement profiles into a separate collateral profile.

Saxo Markets, the institutional division of multi-asset trading and investment expert Saxo Bank, has informed its White Label clients it will be separating the configuration of stock and bond collateral factors from the current margin requirement profiles into a separate collateral profile.

This new collateral profile will be effective from October 2, 2017 and will be configurable on a client level via SaxoTools and the CMS API (as the margin requirement profile is at present).

To secure a smooth transition for clients with custom margin requirement profiles, Saxo will automatically assign a collateral profile to the White Label partners’ clients that result in unchanged collateral terms unless instructed otherwise not later than September 22, 2017.

The assignment of profiles will be based on the following principles:

  • If the collateral definition of the margin requirement profile matches Saxo Bank Default, the client will be assigned the Saxo Bank Default Collateral Profile.
  • If the collateral definition of the margin requirement profile does not offer any collateral, the client will be assigned a No Collateral Profile.
  • In all other cases, a new collateral profile will be created with the same name and collateral as the current Margin Requirement Profile.

If the clients are assigned the Saxo Bank Default Collateral Profile, then their collateral terms will automatically change when Saxo Bank deems it necessary to review collateral terms for its own direct clients going forward.

On top of the introduction of the Saxo Bank Default Collateral Profile, the bank will also be making a new profile ‘Saxo Bank EMIR Collateral Profile’ available on request. This profile is configured with the same collateral values as the Saxo Bank Default Profile but only for a subset of stocks that are deemed to be a member of a main index according to EMIR regulations.

Saxo has recently made a series of moves in order to respond to the new EMIR and MiFID II reporting rules. For instance, the bank has informed its white label partners that all corporate entities need to provide their LEI (legal entity identifier) by October 1, 2017. In case Saxo’s partner is delegating EMIR reporting to Saxo, the bank will also have to be provided with LEIs on all of the partner clients falling within this definition.

Read this next

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.


Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

Digital Assets

Thailand closer to launch digital asset exchange “to serve the needs of younger generations”

TDX is a subsidiary of the Stock Exchange of Thailand (SET) and its incorporation is part of the group’s strategic position to connect capital markets, open opportunities for the business sector in raising funds and cater to investment demand of new generations.

Digital Assets

Russia to legalize cryptocurrency payments as sanctions bite

Russia could soon be the latest country to lay down ground rules for legalizing cryptocurrencies as a means of payment, a sign that governments around the world are realizing that digital assets are here to stay.