Saxo Bank’s FX volume hits record low, but other segments shine

abdelaziz Fathi

As many traders were away on annual leave as the year comes to an end, currency markets saw a relatively quiet period in December. Within that context, Copenhagen-based Saxo Bank has reported its monthly metrics, which showed a renewed decline month-over-month.

The Danish multi-asset brokerage saw its FX average daily volumes drop to a record low at $4.2 billion, which was also down -6.7 percent month-over-month from $4.5 billion in the month prior. Across a yearly timeframe, this figure also failed to best its 2020 equivalent, scoring a 25 percent drop year-over-year from $5.6 billion in December 2020.

Additionally, the ADV metric is lower by over 43 percent from the year’s peak set earlier in March at $7.4 billion.

In terms of Saxo Bank’s total monthly FX volume for December 2021, it was reported at $95.7 billion, which is down from $99.2 billion a month ago and $113.0 billion in October. Further, this figure corresponds to a yearly drop of 26 percent compared to $128 billion in 2020.

In terms of its equities business, Saxo Bank outperformed in this segment after yielding a figure of $10.1 billion in December 2021, up by 42 percent from the $7.1 billion reported in November. The ADV figure also tripled from $4.0 billion set back a year earlier.

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Saxo Bank extending its geographic footprint

Overall, Saxo Bank’s average daily volume across all asset classes was higher during December 2021, reported at $15.7 billion per day, up 18 percent month-over-month relative to $13.3 billion the month prior. Moreover, the figure was higher by 41 percent from $11.1 billion a year ago.

Earlier in October, the subsidiary of Saxo bank has obtained a Hong Kong asset management licence from the Securities and Futures Commission (SFC). The move comes 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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