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.”

The decision also follows Saxo Bank’s signing of the FX Global Code last week and Saxo Bank’s decision to voluntarily publish Enhanced Disclosure to promote increased transparency in the industry.

 

Steffen Wegner Mortensen

+45 3977 6343 
press@saxobank.com

Saxo Bank Group (Saxo) is a leading Fintech specialist focused on multi-asset trading and investment and delivering ‘Banking-as-a-Service’ to wholesale clients.
 
For 25 years, Saxo’s mission has been to democratize investment and trading, enabling clients by facilitating their seamless access to global capital markets through technology and expertise.

As a fully licensed and regulated bank, Saxo enables its direct clients to trade multiple asset classes across global financial markets from one single margin account and across multiple devices. Additionally, Saxo provides wholesale institutional clients such as banks and brokers with multi-asset execution, prime brokerage services and trading technology, supporting the full value chain delivering Banking-as-a-Service (BaaS).

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 launching its first online trading platform in 1998, Saxo Bank was a Fintech even before the term was created. Headquartered in Copenhagen Saxo Bank today employs more than 1500 people in financial centers around the world including London, Paris, Zurich, Dubai, Singapore, Shanghai, Hong Kong and Tokyo.

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