Saxo Bank Ensures Platform Compliance amid FSA Flagging

Wednesday, 30/03/2022 | 10:43 GMT by Arnab Shome
  • The regulator acknowledged that the broker implemented all the necessary controls.
  • “This is a matter we take very seriously,” said Saxo’s Chief Risk and Compliance Officer.
saxo bank logo on office building

Denmark-headquartered broker, Saxo Bank released a statement on Wednesday, highlighting its platform is fully compliant with the European regulatory requirements. Its controls around transaction reporting are also in place.

The statement came after the Danish Financial Supervisory Authority (FSA) flagged the broker for lapses in its transaction reporting system which were in violation of the MiFIR. As per the regulator, the broker did not take reasonable measures till 30 June 2021, to ensure the completion, accuracy and timely submission of the transaction reports.

“This is a matter we take very seriously,” Saxo Bank’s Chief Risk and Compliance Officer, Steen Blaafalk said in a statement.

“In the period from 2018 until the summer of 2021, we have unfortunately had shortcomings in our transaction reports, just as we did not have sufficient control bodies in the area. We have since strengthened our reporting systems and procedures so that we can correct the deficient transaction reports and ensure that the sources of error in our systems were rectified from the second half of 2021, which the Danish FSA also notes in their report.”

Indeed, the Danish supervisory agency pointed out that Saxo had already implemented all the controls aimed at preventing deficiencies in transaction reports in 2021.

Demand Is Increasing

Meanwhile, Saxo remains one of the major brokers in the retail space. It reported a 4.6 percent jump in 2021 trading volume, but profits for the year came in flat at DKK 755 million.

The broker onboarded a record number of 263,000 new clients on its trading platform last year, thus closing the year with 820,000 total clients. Furthermore, trading volume on Saxo jumped this year.

Denmark-headquartered broker, Saxo Bank released a statement on Wednesday, highlighting its platform is fully compliant with the European regulatory requirements. Its controls around transaction reporting are also in place.

The statement came after the Danish Financial Supervisory Authority (FSA) flagged the broker for lapses in its transaction reporting system which were in violation of the MiFIR. As per the regulator, the broker did not take reasonable measures till 30 June 2021, to ensure the completion, accuracy and timely submission of the transaction reports.

“This is a matter we take very seriously,” Saxo Bank’s Chief Risk and Compliance Officer, Steen Blaafalk said in a statement.

“In the period from 2018 until the summer of 2021, we have unfortunately had shortcomings in our transaction reports, just as we did not have sufficient control bodies in the area. We have since strengthened our reporting systems and procedures so that we can correct the deficient transaction reports and ensure that the sources of error in our systems were rectified from the second half of 2021, which the Danish FSA also notes in their report.”

Indeed, the Danish supervisory agency pointed out that Saxo had already implemented all the controls aimed at preventing deficiencies in transaction reports in 2021.

Demand Is Increasing

Meanwhile, Saxo remains one of the major brokers in the retail space. It reported a 4.6 percent jump in 2021 trading volume, but profits for the year came in flat at DKK 755 million.

The broker onboarded a record number of 263,000 new clients on its trading platform last year, thus closing the year with 820,000 total clients. Furthermore, trading volume on Saxo jumped this year.

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6404 Articles
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