Saxo Capital Markets UK Ltd.

A Message from Lord Pickles and Lord Blunkett, followed by Saxo Capital Markets UK Ltd.'s best practice article

The ability to listen and learn from one another has always been vital in parliament, in business and in most aspects of daily life. But at this particular moment in time, as national and global events continue to reiterate, it is uncommonly crucial that we forge new channels of communication and reinforce existing ones. The following article from Saxo Capital Markets UK Ltd. is an attempt to do just that. We would welcome your thoughts on this or any other Parliamentary Review article.

Blunkett signature Rt Hon The Lord David Blunkett
Pickles signature Rt Hon The Lord Eric Pickles

www.home.saxo

THE PARLIAMENTARY REVIEW
Highlighting best practice
16 | SAXO BANK GROUP
Andrew Edwards, CEO, Saxo
Capital Markets UK Ltd
Established in 1992, Saxo Bank Group is a leading multi-
asset trading and investment specialist. We were a fintech
company long before the term was invented, and one of
the first to develop an online trading platform that provides
private investors with the same tools and market access as large
financial institutions and fund managers. Today, Saxo services
clients in more than 170 countries, offering unparalleled access
to global capital markets through its award-winning, multi-asset
trading platforms. CEO of Saxo’s UK entity, Andrew Edwards,
offers a more in-depth description of the company and of the sector
more generally.
Our background
Headquartered in Copenhagen, we currently employ more than 1,500 people in
financial centres around the world, including London, Paris, Zurich, Dubai, Singapore,
Shanghai, Hong Kong and Tokyo. As a leading facilitator in global capital markets,
we connect private and institutional clients with more than 100 global liquidity
providers and exchanges to offer access to more than 35,000 financial instruments
across asset classes. We use technology to make the life of traders and investors
easier, and we deliver “banking-as-a-service” in the field of investment and trading
to other banks, brokers and fintech companies.
As a pioneer in technological innovation, our clients are in a position to trade within the
global markets in 28 languages, in any currency, from any device – be it ETFs, stocks,
bonds, CFDs, Forex, futures and options, all cross-margined from a single account.
Saxo Group recently marked its 25thanniversary, which is a testament to its ability
to continuously deliver on its mission; that is, to democratise investment and
trading – facilitating seamless access to global capital markets through technology
and expertise for its clients.
A new direction
Digitalisation and the adoption of modern technology more broadly are, with good
reason, top priorities for financial institutions. With banks being challenged on
many fronts – from regulation and technological developments to shifting customer
expectations – everyone must find new ways to remain competitive and relevant.
Remaining competitive requires differentiating and prioritising areas where Saxo
can add real value, while outsourcing parts of the value chain that allow them to
deliver a better experience to their end clients than they could deliver through their
own resources.
SAXO
AT A GLANCE
»Founded by Kim Fournais
»Established in 1992
»Headquartered in Denmark,
but operates in financial
centres around the world,
including London, Paris, Zurich,
Dubai, Singapore, Shanghai,
Hong Kong and Tokyo
»No. of employees: More than
1,500 over 60+ nationalities
»Services: Fintech pioneers with
over 25 years of experience
»Over 40,000 tradable products
»43.3 million trades executed
in 2017
»85 exchanges and trading
venues and 15 banks
providing liquidity
»Over $15 billion customer
assets
»Serving clients in over 170
countries
»More than 120 white-label
partners globally
Saxo Bank Group
17SAXO BANK GROUP |
BEST PRACTICE REPRESENTATIVE 2018
For this reason, we entered into our
first white label partnership in 2001
– before many others – and since
then have developed our partnerships
strategy in an open and collaborative
way.Today, Saxo Group has more than
120 white label partnerships globally.
Our partners benefit from more than
two decades of trading innovation and
investment as we continue to enhance
our offering to ensure we deliver
access to investment and trading to
both our direct retail clients and those
who use our platform indirectly via our
white label partners.
It’s worth noting, too, that our white
label solution is a cost and time-efficient
alternative to replacing legacy IT or
building a new operational infrastructure
in-house, thereby avoiding the risks
associated with large IT projects.
For instance, Saxo recently announced
a partnership with Banca Generali, a
large Italian bank, as a consequence
of which Saxo will be providing
technological infrastructure to service
the bank’s customers’ access to global
capital markets through technology
and connectivity with more than 100
global liquidity providers. It is very
costly and time-consuming for any
bank or fintech company to develop
and maintain its own “global capital
markets engine”, which is why we see
the trend of partnerships spreading
much more broadly.
The development is positive for both
customers and the sector as a whole.
Partnerships could become one of
the most disruptive factors in the
financial sector in the coming years and
become the foundation for a significant
step forward in the sector’s use of
technology. When banks no longer have
to develop their own systems, significant
resources can be unleashed to deliver
better services and products for clients.
Potential challenges
Other changes in the sector, however,
have less obviously salutary effects. For
instance, tightening regulations will
result in difficult operational changes
and a squeeze on profit margins across
the board, but will also have the effect
of improving standards – this latter
effect being something we unequivocally
welcome. On top of this, though,
will be the serendipitous additional
demand for our white label services as
more of the value chain is outsourced.
So, more stringent regulations presents
to us long-term opportunities.
Brexit, too, is a potential challenge –
something that most in the financial
sector will attest to. Uncertainty in
general is not good for business, much
more so for the financial industry.
Nevertheless, we believe we are
well protected against some of the
potential downsides of leaving the
European Union. One such way in
which we are protected is the fact
that we are already regulated by
multiple entities across Europe, so
our compliance procedure will not be
dented all that drastically.
With regard to the future, we are
looking to expand in all the markets
that we already have a footprint in. The
UK, for instance, has much to offer us
in terms of prospects. Seeing this, we
have expanded our presence in our
London office from roughly 50 people
to closing in on 100 – most of whom
are dedicated to relationship building
with clients and compliance support.
Saxo’s HQ in
Copenhagen, Denmark
At Saxo we have
developed the
infrastructure to
give our own
direct clients
unparalleled
access to global
capital markets
and we deliver
‘banking-as-a-
service’ in the
field of
investment and
trading

www.home.saxo

This article was sponsored by Saxo Capital Markets UK Ltd.. The Parliamentary Review is wholly funded by the representatives who write for it. The publication in which this article originally appeared contained the following foreword from Rt Hon Kwasi Kwarteng.

Rt Hon Kwasi Kwarteng's Foreword For The Parliamentary Review

By Rt Hon Kwasi Kwarteng

This year’s Parliamentary Review reflects on a tumultuous and extraordinary year, globally and nationally. As well as being an MP, I am a keen student of history, and I am conscious that 2020 would mark the end of an era. It will be remembered as the year in which we concluded Brexit negotiations and finally left the European Union. Above all, it will be remembered as the year of Covid-19.

In our fight against the pandemic, I am delighted that our vaccination programme is beginning to turn the tide – and I pay tribute to the British businesses, scientists and all those who have helped us to achieve this. But the virus has dealt enormous damage, and we now have a duty to rebuild our economy.

We must ensure that businesses are protected. We have made more than £350 billion available to that end, with grants, business rates relief and our furlough scheme supporting more than 11 million people and jobs in every corner of the country, maintaining livelihoods while easing the pressure on employers. The next step is to work with business to build back better and greener, putting the net zero carbon challenge at the heart of our recovery. This is a complex undertaking, but one which I hope will be recognised as a once in a lifetime opportunity.

Through the prime minister’s ten point plan for a green industrial revolution, we can level up every region of the UK, supporting 250,000 green jobs while we accelerate our progress towards net zero carbon emissions.

With our commitment to raise R&D spending to 2.4% of GDP and the creation of the Advanced Research & Invention Agency, we are empowering our fantastic researchers to take on groundbreaking research, delivering funding with flexibility and speed. With this approach, innovators will be able to work with our traditional industrial heartlands to explore new technologies, and design and manufacture the products on which the future will be built – ready for export around the globe.

And I believe trade will flourish. We are a leading nation in the fight against climate change. As the host of COP26 this year, we have an incredible opportunity to market our low-carbon products and expertise. Our departure from the EU gives us the chance to be a champion of truly global free trade; we have already signed trade deals with more than 60 countries around the world.

As we turn the page and leave 2020 behind, I am excited about the new chapter which Britain is now writing for itself, and for the opportunities which lie ahead of us.
Rt Hon Kwasi Kwarteng
Secretary of State for Business, Energy and Industrial Strategy