Australian financial services company OpenMarkets sought to offer access to both local and global markets via the same proprietary platform. OpenMarkets worked closely with Saxo to enable access to global markets via a cash-at-bank model.
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.”
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.
How we managed the cash-at-bank model
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.”
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.
Founded in 2013, OpenMarkets offers a digital trading platform to retail investors, traders, advisers, robo-advisers, brokers and financial intermediaries. With an open philosophy, the firm sets itself apart by integrating with third-party providers and solutions to create new opportunities for its clients. Based on trading volume, the company has consistently been ranked as one of the top 15 Australian brokers and continues to grow rapidly. In 2016, OpenMarkets received a 5-star Canstar rating for outstanding value in share trading.
Find out how OpenMarkets used our front-to-back functionality to expand its product offering
01 Client experience facilitation
- OpenMarkets developed its own app and has a bespoke platform
02 Execution and trading services
- Single cross-margin trading environment to execute orders and manage risk
- Liquidity sourced from 85 venues
- Market data service
- Real-time position keeping and account management
- Real-time risk and margin monitoring
- Activity log of all trading-related activity
03 Post-trade services
- Reconciliation, settlement and custody
- Automatic overnight financing
- Corporate actions processing and stock transfers
- End-of-day and real-time reporting across front-, middle- and back-office
- Collateral management and reporting
Regulatory reporting services
- OpenMarkets uses its own solutions for its reporting duties
04 Tech foundation
- End-of-day file transfers for reporting and business intelligence
- FIX API to receive tailored multi-asset liquidity with back-office services
- Real-time trade notifications for trade, order notifications and margin call data
Services for white label models with undisclosed end-clients
- Set up and manage client account and cash transactions in real time
- Account configuration via a client configuration management API
- Funding and cash management tools to support real-time services
- Self-directed, advisory and discretionary client set ups
- Real-time lead and client administration via SaxoTools
- Real-time back-office platform via WebConnect
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