Saxo Bank Gets Notice from Danish FSA for Reporting Violations
- The reports of transactions with financial instruments offered by the bank have had errors since 2018.
The Danish financial markets regulator has ordered Saxo Bank A/S to ensure the submission of complete and accurate information on transaction reporting as the company had many ‘deficiencies’ in previous reports.
“Since the beginning of 2018, Saxo Bank A / S's reports of transactions have been associated with a number of deficiencies,” the Financial Supervisory Authority, known as FSA, stated in Friday’s announcement.
The regulator detailed that the shortcomings in reporting include errors in the information.
Founded in 1992, Saxo operates as a brokerage and an investment bank with a presence in many countries. Being a licensed bank in Denmark, it is obliged to submit complete and accurate transaction reports of each day by the end of the following day with the market regulator.
The reporting allows the Danish and other European regulators to carry out market surveillance and correctly identify any violations on the part of the capital market participants.
“Significant deficiencies in the transaction reports may, therefore, mean that market abuses are not detected by the relevant authorities, which risks weakening confidence in the markets,” the regulator added.
Saxo told Finance Magnates that the bank flagged the initial inaccuracies and informed the Danish regulator.
"We found some inaccuracies in several of the transaction reports that we as a bank make on a daily basis to relevant authorities every time our clients trade in financial instruments," Steen Blaafalk, Saxo's financial and risk officer, told Finance Magnates.
"We informed the Danish Financial Supervisory Authority and initiated an investigation of our reporting systems and procedures to clarify the reasons behind the erroneous reporting."
Growth Skyrocketed
Saxo’s business boomed last year due to the hyped activities in trading with extreme market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term. The group reported a net profit of DKK 750 million for 2020, which is up from the previous year’s DKK 40 million. It added a total of 238,000 accounts last year, which took the client assets to more than DKK 500 billion.
Additionally, the group’s expansion into China is seen as another factor behind its stellar year. It established an office in the Shanghai Free-Trade Zone in September 2015 and signed several Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term partnerships as a part of its local strategy.
Meanwhile, Saxo is expanding the range of its products and recently added cryptocurrency derivatives as a part of its offerings in selected jurisdictions.
Note: This article has been updated with the comments from Saxo.
The Danish financial markets regulator has ordered Saxo Bank A/S to ensure the submission of complete and accurate information on transaction reporting as the company had many ‘deficiencies’ in previous reports.
“Since the beginning of 2018, Saxo Bank A / S's reports of transactions have been associated with a number of deficiencies,” the Financial Supervisory Authority, known as FSA, stated in Friday’s announcement.
The regulator detailed that the shortcomings in reporting include errors in the information.
Founded in 1992, Saxo operates as a brokerage and an investment bank with a presence in many countries. Being a licensed bank in Denmark, it is obliged to submit complete and accurate transaction reports of each day by the end of the following day with the market regulator.
The reporting allows the Danish and other European regulators to carry out market surveillance and correctly identify any violations on the part of the capital market participants.
“Significant deficiencies in the transaction reports may, therefore, mean that market abuses are not detected by the relevant authorities, which risks weakening confidence in the markets,” the regulator added.
Saxo told Finance Magnates that the bank flagged the initial inaccuracies and informed the Danish regulator.
"We found some inaccuracies in several of the transaction reports that we as a bank make on a daily basis to relevant authorities every time our clients trade in financial instruments," Steen Blaafalk, Saxo's financial and risk officer, told Finance Magnates.
"We informed the Danish Financial Supervisory Authority and initiated an investigation of our reporting systems and procedures to clarify the reasons behind the erroneous reporting."
Growth Skyrocketed
Saxo’s business boomed last year due to the hyped activities in trading with extreme market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term. The group reported a net profit of DKK 750 million for 2020, which is up from the previous year’s DKK 40 million. It added a total of 238,000 accounts last year, which took the client assets to more than DKK 500 billion.
Additionally, the group’s expansion into China is seen as another factor behind its stellar year. It established an office in the Shanghai Free-Trade Zone in September 2015 and signed several Fintech Fintech Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Financial Technology (fintech) is defined as ay technology that is geared towards automating and enhancing the delivery and application of financial services. The origin of the term fintechs can be traced back to the 1990s where it was primarily used as a back-end system technology for renowned financial institutions. However, it has since grown outside the business sector with an increased focus upon consumer services.What Purpose Do Fintechs Serve?The main purpose of fintechs would be to suppl Read this Term partnerships as a part of its local strategy.
Meanwhile, Saxo is expanding the range of its products and recently added cryptocurrency derivatives as a part of its offerings in selected jurisdictions.
Note: This article has been updated with the comments from Saxo.