To expand its clientele OpenMarkets must offer more markets

Fintech start-up OpenMarkets quickly established itself as one of Australia’s top 10 broking organisations based on volume. Providing an innovative cash-at-bank model, its clients can trade using funds held with their existing banks and settle cash post-trade.

However, because of its local engagement model, clients could only trade locally listed Australian securities with dedicated holder identification numbers, via the CHESS system.

In effect, clients required two platforms: one for local trading, and a second for global market access. OpenMarkets saw a gap within the market and sought a solution which would open its model – and clientele – to global markets.

Challenge: Find a partner to create a cost-effective solution

OpenMarkets aimed to become one of the first players to offer a consolidated solution through which clients could settle all trades via one linked cash account. But providing clients with true global market access would be a significant undertaking. OpenMarkets required a partner that would enable it to bypass the traditional significant costs and development times associated with such solutions.

“With Saxo, we were able to map out a solution where clients could trade both local and global markets, with cross-collateralised Australian cash, on a T+2 basis.”

Rick Klink
Co-founder, OpenMarkets

Solution: Leverage Saxo’s open banking suite

Before delivering a customer-centric solution, Saxo provided OpenMarkets with a highly hands-on consultation. Desired results, project possibilities and success criteria were clearly defined. The end solution is tailored toward retail traders and investors, consisting of a third-party platform which connects to a proprietary backend system and leverages the entirety of Saxo’s open banking solution.

Results

OpenMarkets has become a much more visible player within its market, as it has a more competitive international offering. It has widened its client base from catering primarily for the retail segment, to becoming a considerate party for independent advisors and institutional firms.

“Our partnership with Saxo results in [OpenMarkets] being able to offer trading in global securities from one cross-collateralised cash account... at competitive brokerage and FX rates.”

Andrea Marani
CEO, OpenMarkets

Based on the strength of the solution and the growth stories it has provided, OpenMarkets has secured additional venture capital funding. Although this revolutionary approach hadn’t been attempted before, it’s been a highly successful functioning project.