Saxo leaves UK CFD and FX Association
Today, Saxo Capital Markets UK Limited, the UK subsidiary of Saxo Bank A/S, announces the decision to withdraw from the UK CFD and FX Association, a margin trading industry group. The decision follows thorough consideration of consumer protection, including the recent proposals in the Financial Conduct Authority’s (FCA) Consultation Paper (16/40).
The Saxo Bank group strongly supports the FCA’s proposals in respect of providing access to margin products for retail clients through placing responsible caps on levels of leverage offered, enhanced transparency and ensuring that the products and leverage offered are appropriate for the individual client.
Kim Fournais, Saxo Bank CEO and founder, said:
“We have decided to no longer be a member of the UK CFD and FX Association because the association was not sufficiently reflecting our views and interests. Trading CFDs and FX instruments brings a number of advantages to retail investors that have previously been the preserve of larger financial institutions. However, trading these instruments also carries risks that should not be neglected and warrant high industry standards and firm and fair regulation.“
“For the Saxo Bank group it is important that our interests are aligned with our clients’ interests. When our clients succeed, we succeed and to support that, we offer responsible levels of leverage, risk education and relevant information to clients. The Saxo Bank group supports efforts from regulators to set higher standards in the industry and the underlying aim of ensuring better protection of clients and better alignment between the interests of clients and their facilitators.“
“The Saxo Bank group takes a prudent approach to leverage and welcomes the proposals from the FCA to set responsible boundaries on leverage that are in fact roughly in line with the maximum leverage used by our active trading clients today. Trading with excessive leverage leads to a significant risk of frequent stop-outs which leads to client losses. We have no interest in offering clients too high leverage just to see clients being stopped out.”
Saxo Bank Group (Saxo) is a leading multi-asset trading and investment specialist, offering a complete set of trading and investment technologies, tools and strategies.
For 25 years, Saxo’s mission has been to enable individuals and institutions by facilitating their access to professional trading and investing through technology and expertise.
As a fully licensed and regulated bank, Saxo enables its private clients to trade multiple asset classes across global financial markets from one single margin account and across multiple devices. Additionally, Saxo provides institutional clients such as banks and brokers with multi-asset execution, prime brokerage services and trading technology.
Saxo’s award winning trading platforms are available in more than 20 languages and form the technology backbone of more than 100 financial institutions worldwide.
Founded in 1992 and headquartered in Copenhagen, Saxo employs more than 1500 people in financial centres around the world including London, Singapore, Paris, Zurich, Dubai and Tokyo.