Saxo Bank digitises bond trading
12 September 2016 Copenhagen
Image: Shutterstock
Denmark’s Saxo Bank has launched its new digital bond trading solution for corporate and government bonds.
According to Saxo Bank, the new solution utilises its relationships with liquidity providers in bond markets while also using new technology products.
It will offer access to over 5,000 investment-grade and high-yield corporate and government bonds from around the world, and in 20 currencies.
Bond orders will be directed to an ‘optimised dealer’ auction with up to 40 liquidity provider participants, with most trades completing within a matter of seconds.
The competitive multi-dealer platform means clients could see savings of up to 30 basis points for corporate bonds, and between 5 and 10 basis points on government bonds.
It also means both retail and institutional investors will gain more direct access to fixed-income trading opportunities, more transparently and efficiently.
The platform will be initially rolled out on SaxoTradeGO, the bank’s multi-asset trading platform.
Kim Fournais, CEO and co-founder of Saxo Bank, said: “It is hard to imagine a market which is more ripe for disruption than the bond market. Watching a bond trader trade over the phone, at a time when the internet has touched almost every area of financial markets, not to mention our lives, is a clear call for disruption.”
“Investors need to ask themselves if they want to continue to trade based on an indicative price from a single bank or if they want to get the best price available from more than 40 global bonds providers, including some of the largest global banks.”
Simon Fasdal, head of fixed income trading at Saxo Bank, said: “I am proud that the next step in Saxo Bank’s history of democratising trading and investment is to truly digitise bond trading.”
He added: “Client demand and regulatory pressure makes transparency absolutely key and with our new offering we will charge a commission, offering full transparency to clients, in contrast to the industry standard of a spread based system, which is not always a transparent way of pricing clients.”
According to Saxo Bank, the new solution utilises its relationships with liquidity providers in bond markets while also using new technology products.
It will offer access to over 5,000 investment-grade and high-yield corporate and government bonds from around the world, and in 20 currencies.
Bond orders will be directed to an ‘optimised dealer’ auction with up to 40 liquidity provider participants, with most trades completing within a matter of seconds.
The competitive multi-dealer platform means clients could see savings of up to 30 basis points for corporate bonds, and between 5 and 10 basis points on government bonds.
It also means both retail and institutional investors will gain more direct access to fixed-income trading opportunities, more transparently and efficiently.
The platform will be initially rolled out on SaxoTradeGO, the bank’s multi-asset trading platform.
Kim Fournais, CEO and co-founder of Saxo Bank, said: “It is hard to imagine a market which is more ripe for disruption than the bond market. Watching a bond trader trade over the phone, at a time when the internet has touched almost every area of financial markets, not to mention our lives, is a clear call for disruption.”
“Investors need to ask themselves if they want to continue to trade based on an indicative price from a single bank or if they want to get the best price available from more than 40 global bonds providers, including some of the largest global banks.”
Simon Fasdal, head of fixed income trading at Saxo Bank, said: “I am proud that the next step in Saxo Bank’s history of democratising trading and investment is to truly digitise bond trading.”
He added: “Client demand and regulatory pressure makes transparency absolutely key and with our new offering we will charge a commission, offering full transparency to clients, in contrast to the industry standard of a spread based system, which is not always a transparent way of pricing clients.”
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