Saxo Bank ordered to provide accurate reporting amid deficiencies since 2018

Rick Steves

The shortcomings include errors in information that are significant for both the Danish FSA’s and other European supervisory authorities’ ability to carry out market surveillance and correctly identify specific market participants, the regulator said.

The Danish Financial Supervsory Authority has ordered Saxo Bank A / S to implement measures that ensure complete and accurate information in reports of transactions, the regulator announced.

The country’s FSA – Finanstilsynet – has stated that Saxo Bank has issued incomplete transaction reports. As a bank, it is obliged to report complete and accurate information on transactions with financial instruments to the competent authority as soon as possible and no later than at the end of the following working day.

“Since the beginning of 2018, Saxo Bank A / S’s reports of transactions have been associated with a number of deficiencies. The shortcomings include errors in information that are significant for both the Danish FSA’s and other European supervisory authorities’ ability to carry out market surveillance and correctly identify specific market participants”, the regulator said.

Reporting transaction information is an essential element in monitoring whether there is market abuse in the capital markets. Significant deficiencies in the transaction reports may therefore mean that market abuses are not detected by the relevant authorities, which risks weakening confidence in the markets.

Steen Blaafalk, Group Financial & Risk Officer, has the following comment on the Danish Financial Supervisory Authority’s order:

“We found some inaccuracies in several of the transaction reports that we as a bank make on a daily basis to relevant authorities every time our clients trade in financial instruments.

We informed the Danish Financial Supervisory Authority and initiated an investigation of our reporting systems and procedures to clarify the reasons behind the erroneous reporting.

We of course take note of the order and have after dialogue with the Danish Financial Supervisory Authority launched the necessary initiatives that ensure that the specific order is complied with within the deadline set by the Danish Financial Supervisory Authority.”

Saxo Bank has recently reported 400% growth in client deposits since Geely took over the company. The key driver behind it is likely to be its business expansion in China arranged by Geely.

In the last three years, the 28-year old trading company has seen deposits growing from DKK 100 billion to the current figure, up by 400%.

Saxo established a China office in the Shanghai Free-Trade Zone in September 2015 and has since then signed extensive financial technology partnerships as part of its Greater China strategy. Geely International Hong Kong, a subsidiary of Geely Group, became a shareholder in Saxo in 2017 after acquiring a 25.71% stake and, one year later, the Chinese multinational took over after agreeing to hold 52% of the trading company.

Geely’s acquisition of Saxo Bank came amid a complete role-reversal that took place in China which created a massive opportunity for multi-asset FX brokers. The new law against regional exchanges opened the door to retail FX as companies look toward OTC electronic trading via international liquidity providers in order to retain their existing audience and branch out, whilst protecting themselves against closure.

This would mean the opening of prime brokerage accounts with global providers and using platforms hosted in mainland China, but developed and owned by global companies, in order to connect an existing Chinese client base to Chinese and international asset classes. Saxo Bank is in a prominent position to provide the needed liquidity to the Chinese OTC market, especially since being acquired by Geely. This just might be the key driver to Saxo Bank’s growth in recent years.

In March, Kari Stadigh, former Group CEO and President of Sampo plc., was elected by the shareholders as the new Chairman of the Board of Saxo Bank. Mr. Stadigh replaced Daniel Donghui Li, CEO of Zhejiang Geely Holding Group, who will continue as a regular member of the Board.

Read this next

Retail FX

Stephen Kalayjian launches educational and community platform TradeEZ

TradeEZ has partnered with online broker TradeZero to provide chart overlays that can be accessed on the TradeZero platform. In the future, the firm will be looking to partner with some of the largest firms around the world.

Retail FX

LiteFinance launches new mobile app on Google Play

The mobile app allows users to trade and copy professional traders’ positions and gain access to trading chat rooms.

Technology

ECXX taps OneTick for data management and analytics

OneTick is asset class-agnostic and currently has customers across FX, equities, futures, CFDs, FI, and options.

Industry News

$1.5 million: SEC fines BNY Mellon Investment Advisor for misstatements and omissions about ESG

Investors are increasingly focused on ESG considerations when making investment decisions.

Digital Assets

Mercuryo reaches 3 million users amid crypto payments’ US and Asia expansion

“The opportunities for linking crypto and fiat currencies are abundant. From crypto projects that require fiat solutions (like fiat on and off ramps and IBANs), through to crypto for traditional fiat systems, and solutions for fintech companies that enable clients to buy or sell crypto within their own infrastructure.”

Retail FX

Maltese watchdog warns of bogus broker Perfect Choice Trade

The Malta Financial Services Authority (MFSA), the regulator responsible for the oversight of the forex  sector in the Mediterranean island, today issued a warning against a forex broker that offers its services without having the authorization to do so.

Digital Assets

Dukascopy warns of fake website impersonating its cryptocurrency

Switzerland’s forex bank and broker, Dukascopy, today warned against a fraudulent website that have been falsely claiming affiliation with its ‎authorized brand.‎

Uncategorized

Freetrade raises £30 million to fund business expansion

Freetrade, which calls itself a challenger stockbroker, has raised £30 million in debt financing led by a clutch of existing investors.

Digital Assets

Crypto assets under management at lowest point since July 2021

Crypto investment products registered outflows for a second consecutive week, the bulk of which came from bitcoin funds, according to data from digital asset manager CoinShares.

<