Sell-Side Technology Awards 2014: Best Outsourcing Provider to the Sell Side — Saxo Bank

Saxo offers an outsourced technology platform for foreign-exchange (FX) trading, but it also provides a fully automated multi-asset front-, middle-, and back-office solution, as well as custody services, reporting, and risk management. “Our revenue-sharing model means that clients can replace legacy technologies with no upfront costs—our interests and those of our white-label clients are fully aligned,” says Matteo Cassina, executive vice president at Saxo Bank.

Since 2001, Saxo Bank has targeted the FX market with its FX White Labeling offering through an initiative known as White Label Partnerships (WLPs). In 2013, Saxo Bank entered into 10 new WPLs, most notably with Standard Bank of South Africa in November.

Standard Bank, headquartered in Johannesburg, serves as a broker for South Africans trading in domestic markets. It tapped Saxo’s international markets white-labeled solution, enabling its clients with off-shore funds to trade international stocks, exchange-traded funds (ETFs) and FX. This year the two institutions will expand their partnership to include new geographies and business areas.

The Saxo white-label solution was born out of its retail business, although it naturally extended over into the institutional space, according to Cassina. “Over 100 financial institutions already use our white-label services, but as more banks face the decisions about replacing or upgrading legacy technologies, we expect demand to continue to grow,” he says.

At press time, Saxo was getting set to launch a new WPL product on its multi-asset platform for single-stock options trading. “As flows return to the equity markets, our while-label clients will be able to offer equity investors the opportunity to both invest in and hedge their exposure through stock options,” Cassina says.

“Our revenue-sharing model means that clients can replace legacy technologies with no upfront costs—our interests and those of our white-label clients are fully aligned.” —Matteo Cassina, Saxo Bank

He adds that Saxo will look to continue to grow its WPL line-up over the coming months. “Our ambition is to continue to innovate to meet the trading needs of our clients,” he says. “We want to create a virtuous cycle of innovation, liquidity, performance, and robust risk management for all of our clients.”