Saxo Bank reports weakest FX volume in 6 months

abdelaziz Fathi

As many traders were away on annual summer leave, currency markets saw a relatively quiet period in July. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

The latest figures saw a sizable consolidation in key volume segments, failing to overtake a number of recent highs seen over the last three months.

The Danish multi-asset brokerage saw its FX average daily volumes drop to a six-month low at $5.5 billion, which was also down -20 percent month-over-month from $6.9 billion in June. Across a yearly timeframe, however, this figure managed to best its 2021 equivalent, scoring a 7.8 percent rise year-over-year from $5.1 billion in July 2021.

In terms of Saxo Bank’s total monthly FX volume for July 2022, it was reported at $116 billion, which is down 24 percent from $152 billion a month ago. Further, this figure corresponds to a yearly rise of 3 percent compared to $112 billion in 2021.

In terms of its equities business, Saxo Bank also disappointed in this segment after yielding a figure of $7.9 billion in July 2022, down by 10 percent from the $8.7 billion reported in June.

Saxo Bank extends its geographic footprint

Overall, Saxo Bank’s average daily volume across all asset classes was lower during July 2022, reported at $15.3 billion per day, down 16 percent month-over-month relative to $18.1 billion the month prior. However, the figure was higher by 8.5 percent from $14.1 billion a year ago.

Earlier in 2021, the subsidiary of Saxo bank has obtained a Hong Kong asset management licence from the Securities and Futures Commission (SFC). The move came nearly three years after China auto-maker Zhejiang Geely became Saxo’s majority shareholder, which signalled the Danish bank’s ambitions to further expand its business into Asia.

Leveraging its fintech background, Saxo Markets plans to tap into its presence in the Chinese market to provide a viable alternative to traditional asset management. Having secured a type 4 licence, which allows it to offer securities investment, the company mainly targets investors who are looking for a more personalised option at a lower fee threshold.

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