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.

Read this next

Digital Assets

FTX Japan has until March to return customer assets

The Kanto finance bureau of Japan’s Ministry of Finance (MoF) said it will extend its business suspension order for FTX Japan, the Japanese arm of the beleaguered crypto exchange FTX.com.

Executive Moves

Johan Wiese replaces Richard as director of IG South Africa

IG Group, Europe’s largest online trading platform, has relocated its Finance Chief Operating Officer (COO) Johan Wiese to join its South Africa business as a director.

Digital Assets

Nexo continues European expansion with Polish licence

Crypto lender Nexo said today that it had been registered as a virtual currency operator with the Ministry of Finance in Poland, which enables its European-based entity to provide services to the country’s residents lawfully.

Digital Assets

Wirex expands crypto lineup to 130 tokens

Payment and crypto wallet provider Wirex has listed 52 new tokens on their app, bringing the total number of supported digital assets to 130, alongside 13 fiat currencies.

Executive Moves

Capital.com lures IG’s long-serving exec Greg Adams

Multi-licensed online brokerage group Capital.com has appointed Greg Adams, who spent the bulk of his two-decade career at IG Group, as its newest head of risk.

Digital Assets

Farcana and Dravus join forces to line up sustainable mining power sources

As a result of growing ecological awareness, the sector’s top companies have been working to achieve effective cryptocurrency mining while still being energy-efficient: e.g. using mining facilities fueled by renewable power and located in colder regions to lower heat-dissipation costs.

Retail FX

Vantage to expand swap-free trading offering after savings of $1 million in gold XAUUSD

The swap-free product enhancement was designed to provide greater convenience for gold XAUUSD traders. Clients are not charged overnight fees when trading across all trading accounts, including on the Vantage App, regardless of trade size.

Digital Assets

Bosonic launches Cross Custodian Net Settlement to further eliminate settlement risk

Bosonic has announced the go-live of Cross Custodian Net Settlement (CCNS) in which trades in USDC and ETH were executed, cleared, and settled atomically between two digital asset custodians, First Digital in Hong Kong and Propine in Singapore.

Industry News

IntraFi taps Broadridge to offer loans to costumers of brokers, advisors, and RIAs

“Broadridge’s partnership with IntraFi expands the availability of securities-based lending to previously underserved parts of the market — community and regional banks, independent broker-dealers, and unaffiliated advisors and RIAs.”

<