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Saxo Bank signs up to the FX Global Code of Conduct
Welcomes the initiative as crucial to strengthen the integrity of the FX market and bolsters its commitment with the introduction of Enhanced Disclosure
Saxo Bank, the online trading and investment specialist, signs up to the FX Global Code of Conduct (“the Code”), which is aimed at improving industry standards and promoting best practice among FX market participants. The Code is a result of an industry-wide initiative developed over two years through a partnership between central banks and FX market participants from 16 jurisdictions around the world.
The initiative aims to promote the integrity, trust and effective functioning of the global wholesale FX market which has suffered as a result of, but not limited to, trader misconduct, breaches of client confidentiality, failure to manage conflicts of interest and inappropriate order handling.
To emphasise support for openness and transparency Saxo Bank has taken the initiative to publish an Enhanced Disclosure that provides insight to Broker Incentive, Broker stability, Client Leverage and Performance.
Kim Fournais, CEO and co-founder of Saxo Bank, said:
“We are proud to have been given the opportunity to participate as a member of the Bank of England’s FX Joint Standing Committee in reviewing and drafting this important and unprecedented industry-wide initiative.”
“We take pride in being at the forefront driving transparency and signing the Code as well as publishing the Enhanced Disclosure as a proof of the full alignment of interest between Saxo Bank and our clients. It is a means of promoting integrity and trust and is a point of orientation for clients when choosing a facilitator.”
The Code, which has been developed around six core principles crucial to the FX ecosystem, will ensure that trading of FX instruments is supported by appropriate elements of integrity and transparency. Furthermore, by placing proportionate levels of responsibility among market participants and providing a robust structure for future review and collaboration, the Code will engender greater confidence in the FX market and be crucial to re-building the trust between market participants and end clients.
Commenting on the Code, Kurt vom Scheidt, Global Head of FX, Saxo Bank, said:
“One of the unique aspects of the Code is the fact that it covers the entire FX industry –sell-side firms, buy-side firms, trading platforms and venues - and that it is global in nature. This will ensure that standards are consistently applied across the industry, levelling the playing field among segments of market participants and restoring competition based on principles of transparency and integrity,”.
Saxo Bank believes that a well-functioning FX market is in the interest of all participants. The Code sets out the principles and best practices which provide a common set of guidance to the market, including areas where there recently have been degrees of uncertainty about which practices are deemed acceptable.
“While other markets have attempted similar self-regulating initiatives, we have never seen this level of co-ordination and commitment among market participants. Public adherence to the code is essential in ensuring that market participants can continue to scrutinise their peers’ practices and therefore ensure that bad practices and market abuse are rooted out. The fact that evolution of the Code was driven by input from a healthy cross-section of market participants makes it well rounded and considered,” added vom Scheidt.
Please see Enhanced Disclosure here: home.saxo/about-us/enhanced-disclosure
Previous actions taken by Saxo Bank to promote transparency:
Saxo Bank believes that open and transparent markets, coupled with a full alignment of interest between providers and clients, offer a real opportunity for differentiation between brokers. To this end, Saxo has continuously led the way in introducing greater transparency and efficiency to FX trading.
In November 2016, it implemented Order Driven Execution for FX Spot, FX Forwards and CFDs, which provides clients with robust order handling through increased liquidity, transparency and control, with potential price improvements on every trade.
Saxo has also taken the initiative to publicise a comprehensive order execution policy to describe in detail how it executes orders on behalf of its clients, as well as publish order execution statistics to help clients make the best choice when choosing a broker.
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.