Saxo Bank Trading Volumes Trend Lower in September

The trading volumes of the Danish multi-asset brokerage have dropped significantly in recent months

Saxo Bank’s trading volumes continue trending lower in September. The Danish multi-asset brokerage house has booked transactions worth $243 billion last month.

The number is lower by 11 percent when compared to August and by 29 percent when compared to last year. The news can’t come as a surprise in an environment which has been impacted by the new ESMA leverage regulations.

The Danish brokerage is not diverging from the crowd, despite its relative focus on higher net worth individuals.

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In a seasonal summer environment which is characterized by lower volatility, the move is not conclusive. For Saxo Bank, the figure is a multi-year low, pointing towards a period of adaptation to a new normal for volumes. 

Segment Breakdown

The foreign exchange trading volumes declined by 11.6 percent month-on-month to $173 billion. The number is also lower by 30 percent when compared to last year.

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Commodities trading ticked lower by 28 percent when compared to August to mark $16.4 billion. The year-on-year picture looks different with a decline of 52 percent.

Equities trading at Saxo Bank was much more modestly affected with the monthly decline totaling a touch over 7 percent to $45.7 billion. Looking at the yearly comparison, the number was only 10 percent lower.

Fixed income trading was the sole out-performer last month. Trading activity rose by 47 percent when compared to August, but dropped lower year-on-year by 30 percent at $7.8 billion in September.

Institutional Focus Doesn’t Save Saxo

Looking at the numbers, the institutional focus of Saxo Bank doesn’t seem to be playing a big role. Despite the efforts of the firm to focus on higher net worth individuals over the years, Saxo Bank’s clients still got impacted by higher leverage requirements.

Considering the relatively clear high deposit requirements of Saxo Bank, the figures across other brokerages which haven’t been focused into the same direction in advance, could be much worse.

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