Saxo’s parent company, Saxo Bank, gets investment grade credit rating for solid business model.
The rating from S&P Global Ratings demonstrates the Saxo Group’s dedication to maintaining a strong financial position, resilient business model and providing cutting-edge services to our clients.
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Protection of client funds
As a financial institution licensed and regulated by the Securities and Futures Commission (SFC), Saxo is obliged to hold money received from clients held on behalf of clients in accounts separated from Saxo’s own money in accordance with the Securities and Futures (Client Money) Rules (Cap. 571I).
All funds deposited by clients with Saxo are kept in segregated client trust accounts within one business day after Saxo receive such funds in accordance with the above regulation. In the unlikely event of Saxo’s insolvency, clients’ money held with custodians will be excluded from the money of Saxo available to Saxo’s creditors and will remain for the benefit of the relevant client subject to deductions of charges and other costs due to Saxo. Saxo uses only its own funds for hedging and does not pass client money to hedging counterparties.
What happens if a bank holding clients' money on behalf of Saxo Capital Markets goes into liquidation?
In the event that a Hong Kong-based bank goes insolvent, clients' money held in the trust account will be treated as a liability of the Hong Kong bank and dealt with in accordance with Hong Kong laws and regulations. Saxo has set up trust accounts with HSBC (licensed and regulated by HKMA).
How well capitalised is Saxo in case of market turmoil?
Saxo is well capitalised. We are a wholly owned subsidiary of Saxo Bank A/S, which is licensed within an EU member state and 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.
Is Saxo liquid, i.e. is Saxo able to meet withdrawal requests in case of a bank run?
In April 2023, Saxo’s parent company, Saxo Bank A/S was assigned ‘BBB’ rating with a positive outlook from S&P Global Ratings. This rating reflects among others, the strong capital and earnings of Saxo Bank A/S (as the parent company of Saxo). As we outlined in our recent annual report, the Saxo Group is highly liquid and able to meet withdrawal requests.
Does Saxo provide any lending to start-ups or other companies?
Saxo is a financial institution but does not provide lending services like traditional retail banks. As of date, Saxo only provides secured financing such as margin lending and stock lending.
What is Saxo'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 Saxo have any exposure to digital asset exchanges?
Saxo does not have any relationship with, or exposure to, digital asset exchanges.