Saxo Banks Client Collateral Deposits Strike All-Time High

Volatility has helped fuel Saxo's volumes and turnover to new heights.

Danish multi-asset brokerage Saxo Bank has seen its client collateral deposits soar to new heights. They have now struck an all-time high of $15.0 billion (DKK 100 billion) due to increased volatility and customer confidence in recent months, according to a company statement.

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One of the primary impetuses in the increase of volumes over the past year has been attributed to a series of episodic events, helping drive up volatility. This includes the Brexit referendum in the UK and a divisive US presidential election, among other events. In the case of the US election, on November 9, 2016, Saxo Bank saw its client trades exceed 490,000, a new high.

As such, Saxo Bank is eyeing even further gains with 2017’s round of electoral events, namely with the French election on May 7, 2017 and the upcoming UK election on June 8, 2017. The events continue to set the tone for volatility this year, which without exception has resulted in heightened attention and activity from both traders and investors.

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The group’s recent high of $15.0 billion (DKK 100 billion) represents a steadfast growth for Saxo Bank – the figure has nearly doubled since 2013 when it recorded just $758.1 million (DKK 50.6 billion). Moving forward, Saxo Bank is looking to enhance its client base via a series of targeted investments to its offering in a bid to keep up this level of growth.

As seen in its 2016 full-year financial results, Saxo Bank’s operating income was on the rise, growing 38.0 percent year-over-year from 2015. Profits were also pointed higher, orchestrating a rebound off the previous year that saw key metrics down.

Claus Nielsen

According to Claus Nielsen, Saxo Bank’s Head of Markets, in a statement on the record highs: “First and foremost we would like to thank both our direct clients and white label clients for their trust in Saxo Bank and will continue to respond to their confidence in us with service and commitment.”

“Alongside the onboarding of new clients, the increase in collateral deposits reaffirms the strength of our multi-asset offering and represents early evidence of Saxo Bank continuing its growth trajectory in 2017. From Brexit to Trump, we are proud to have ushered clients through a series of macro events unscathed. We thrive when our clients thrive and therefore having informed clients able to make prudent choices within a robust trading infrastructure is essential,” he explained.

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