How are my funds protected at Saxo Capital Markets Pte. Ltd.?

Protection of client funds

As required by the Monetary Authority of Singapore (MAS), Saxo deposits funds received from customers into trust accounts no later than the business day immediately following the day on which the funds are received, or the day on which Saxo is notified of the receipt of such funds, whichever is later. Saxo uses only its own funds for hedging and does not pass client money to hedging counterparties.

For more details, please also refer to this link.

What happens if a bank holding clients' money on behalf of Saxo Capital Markets goes into liquidation?

In the event that a Singapore-based bank goes bankrupt, clients' money held in the trust account will be treated as a liability of the Singapore bank and dealt with in accordance with Singapore laws and regulations. Saxo has set up trust accounts with HSBC (licensed and regulated by MAS).

Additional safeguards in relation to client money

Saxo is required to file a quarterly ‘Statement of Assets and Liabilities’ to MAS to certify that the segregation requirements for client money in trust accounts are complied with.

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 Bank 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 securities 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 provide crypto products and/or services to clients?

Saxo does not provide direct crypto products or services which are considered Digital Payment Tokens and only provides exchange-traded cash products with exposure to crypto (i.e. ETPs such as ETFs and ETNs) as well as an FX crypto derivative product, which are Payment Token Derivatives.

Does Saxo hold crypto itself and how much, and with whom?

Saxo has a stringent risk management setup related to its crypto derivative products, and we have a very small exposure to crypto.