Exclusive: Saxo Bank Fortifies Prime of Prime Offering via NY4, LD4 DMA Hubs
- Saxo Bank has rolled out a new capability in its FX prime offering, catering to institutional clients.
Saxo Bank has strengthened its prime of prime (PoP) offering for its global institutional clients. This includes the support of dedicated infrastructure DMA Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term hubs in London and New York. The development follows strong client demand for larger executing sizes, helping foster more efficiency for full amount execution.
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The development has been a long time coming, with Saxo Bank gradually building out its PoP offering and business on a global scale. In particular, demand for this service has been driven by growth in small to mid-sized institutional clients turning to Saxo Bank for direct market access (DMA) and liquidity optimization services.
Lucian Lauerman, Global Head of Electronic Distribution, commented exclusively to Finance Magnates: “Our full amount liquidity is something we have been working on for some time. It has become obvious that as our prime of prime business grows, we have clients that are occasionally or more regularly executing larger sizes and would greatly benefit from access to a different type of liquidity.”
Lucian Lauerman
Tapping into NY4 and LD4 in New York and London respectively represents an important stroke for Saxo Bank. Overall, the move will help support improved full amount execution, while ensuring a better trade experience and lower market impact for large orders in FX and precious metals.
Indeed, “Placing orders in full amount with one LP will reduce market impact. Clients stand to benefit from better pricing, due to decreased slippage from fewer rejections. At the same time it became obvious we needed new architecture that sat alongside our current infrastructure but devoted completely to full amount execution – with bespoke liquidity feeds and a platform scaled to perform,” added Mr. Lauerman.
The move is expected to accommodate a range of Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term and clients, with an emphasis on clients with larger orders. “As liquidity providers increasingly shorten last look periods and the market moves to an environment with faster response times, I think full amount liquidity will be priced a lot more competitively in size than sweepable liquidity,” explained Christian Thomsen, an FX liquidity manager at Saxo Bank, exclusively to Finance Magnates.
“This is already the case for orders in sizes of 10 million or greater, and I would expect that trend to continue. We feel this initiative accommodates both clients and LPs,” he noted.
Saxo Bank has strengthened its prime of prime (PoP) offering for its global institutional clients. This includes the support of dedicated infrastructure DMA Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term hubs in London and New York. The development follows strong client demand for larger executing sizes, helping foster more efficiency for full amount execution.
Discover credible partners and premium clients at China’s leading finance event!
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The development has been a long time coming, with Saxo Bank gradually building out its PoP offering and business on a global scale. In particular, demand for this service has been driven by growth in small to mid-sized institutional clients turning to Saxo Bank for direct market access (DMA) and liquidity optimization services.
Lucian Lauerman, Global Head of Electronic Distribution, commented exclusively to Finance Magnates: “Our full amount liquidity is something we have been working on for some time. It has become obvious that as our prime of prime business grows, we have clients that are occasionally or more regularly executing larger sizes and would greatly benefit from access to a different type of liquidity.”
Lucian Lauerman
Tapping into NY4 and LD4 in New York and London respectively represents an important stroke for Saxo Bank. Overall, the move will help support improved full amount execution, while ensuring a better trade experience and lower market impact for large orders in FX and precious metals.
Indeed, “Placing orders in full amount with one LP will reduce market impact. Clients stand to benefit from better pricing, due to decreased slippage from fewer rejections. At the same time it became obvious we needed new architecture that sat alongside our current infrastructure but devoted completely to full amount execution – with bespoke liquidity feeds and a platform scaled to perform,” added Mr. Lauerman.
The move is expected to accommodate a range of Liquidity Providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term and clients, with an emphasis on clients with larger orders. “As liquidity providers increasingly shorten last look periods and the market moves to an environment with faster response times, I think full amount liquidity will be priced a lot more competitively in size than sweepable liquidity,” explained Christian Thomsen, an FX liquidity manager at Saxo Bank, exclusively to Finance Magnates.
“This is already the case for orders in sizes of 10 million or greater, and I would expect that trend to continue. We feel this initiative accommodates both clients and LPs,” he noted.