Saxo Capital Markets and OpenMarkets announce fintech solution
Strategic alliance between industry leaders to deliver a combined HIN and international equities trading solution to better serve the online broking market.
Australia’s fastest-growing online stockbroker, OpenMarkets, and multi-asset class trading and investment specialist, Saxo Capital Markets, today announced a reciprocal partnership to provide each other with technology solutions to build upon their respective market leading offerings.
The partnership will allow OpenMarkets’ clients to have access to Saxo’s extensive list of global equities with multi-currency settlement, while Saxo clients will now be able to invest in Australian shares through a Holder Identification Number (HIN) structure.
“This represents the collaboration of two Fintech powerhouses in the online broking industry in Australia,” said Saxo Capital Markets Australia CEO, Ben Smoker.
“We are providing the international equities trading engine and technology to OpenMarkets, giving them access to over 19,000 global stocks across 36 different exchanges.”
For OpenMarkets, the alliance with Saxo allows it to become a truly global trading platform , bypassing significant development time and expense to provide its clients with a broader range of trading options. This includes the ability to:
- Buy and sell exchange-listed securities in global markets, including US, UK and the major European and Asian markets;
- View all assets in one portfolio screen;
- Trade through a single platform, where Australian equities are still maintained on HIN;
- Settle all trades (Australian and international) via the client’s one linked cash account
- Consolidate all transactions and holding data, and feed this data to SMSF and portfolio administration reporting platforms.
Conversely, the integration with OpenMarkets allows Saxo to increase trading activity for global shares through its international equities platform.
On the customer side, Saxo will be able to meet market demand for settlement of Australian equities into HIN from a multi-asset platform. This means that Saxo clients will be able to hold Australian stocks through the HIN structure provided by the ASX’s Clearing House Electronic Subregister System (CHESS), alongside other assets within Saxo’s trading platform.
The alliance between OpenMarkets and Saxo also breaks a historical model in the Australian broking industry, where HIN-based stockbrokers for Australian share trading and custodian-based brokers for international shares have always been segregated.
Saxo and OpenMarkets are effectively bridging this gap by providing the first integrated solution for the Australian market.
“This is an alliance between two like-minded technology brokers that have complementary services and share a win-win philosophy towards third party integration. Our partnership with Saxo will result in us being able to offer trading in global securities from one cross-collateralised cash account and we will do this at competitive brokerage and fx rates,” said OpenMarkets CEO, Andrea Marani.
“This global markets trading offering, coupled with our range of reporting platform data feeds, will go a long way towards meeting the demand we are seeing from the SMSF market looking for global investment diversification.”
“Thanks to our new partner, Saxo will be the first broker to offer a HIN solution on a singular, consolidated multi-asset trading platform. This differentiates us from other multi-asset brokers who also offer access to local shares, but do not have HIN,” Mr Smoker said.
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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 almost 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.