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How does Saxo treat client money and assets? with withdrawal requests in case of a bank run?
As outlined in our recent annual report, Saxo Bank Group is highly liquid and able to meet withdrawal requests. In Australia, Saxo is licensed by ASIC, meaning we are required to adhere to its Client Money regulations as well as the Corporations Act 2001 (Cth) regarding the holding, auditing and reporting of client money and assets.
So, when it comes to protecting your money and assets, Saxo only holds client money and assets in trust for the benefit of its clients, and is segregated from non-client money and non-client assets. This is confirmed in writing each year by an appointed External Auditor as part of our license audit. Under no circumstances will Saxo pass on any of it’s clients’ money for hedging counterparty risk, nor do we conduct any proprietary trading.
How does Saxo deal with withdrawal requests in case of a bank run? And what does Saxo do in the event of its liquidation?
As client money and assets are held by Saxo on trust for the benefit of its clients, those monies and assets will be returned to our clients in the event of liquidation, otherwise will be available to withdraw upon request by a client. Such money and assets would never be considered as owned by Saxo.
How well capitalised is Saxo Bank in case of market turmoil?
Saxo Bank is well capitalised, and being licensed within an EU member state, this means Saxo Bank is subject to capital requirements set forth by the EU. This includes Capital Requirement Regulation (CRR) as well as Capital Requirement Directive (CRD) - the latter being implemented as national regulation in Denmark.
Does Saxo provide any lending to start-ups or other?
Saxo does not provide lending services like traditional retail banks. Other Saxo offices other than Australia however does provide secured financing such as margin lending and securities lending.
What is Saxo Bank Group’s exposure to other banks, and how is it managed?
Saxo has a large and resilient market network. We always ensure capital buffers and that our relationships are governed by relevant agreements and authorities.
Does the Saxo Bank Group provide crypto products and/or services to clients?
Saxo offers exchange-traded cash products with exposure to crypto (ETFs, ETNs, etc.) as well as an FX crypto derivative product.
Does Saxo hold crypto itself and how much, and with whom?
The Saxo Bank Group has stringent risk management setup related to its crypto offerings, and thus only have a very small exposure to crypto.