As required by the Monetary Authority of Singapore, Saxo Capital Markets Pte. Ltd. ("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.
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What happens if a bank holding clients' money on behalf of Saxo Capital Markets goes into liquidation?
In the event that the 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 Capital Markets has set up trust accounts with HSBC (licensed and regulated by MAS).
Additional safeguards in relation to client money
Saxo Capital Markets 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.