Saxo to Offer New Order Type

Saxo Bank will launch a new order driven
execution model for FX products and CFDs on commodities and indices in
November.

The key difference in the new order type is
that it will add Saxo’s own liquidity to the price that customers see, in
addition to the DMA type liquidity already available.

By adding its own proprietary liquidity,
Saxo is tip-toeing in the ‘A’ and ‘B’ book model of brokers under which some
clients’ business is back-to-backed into the market while others’ is held by
the firm for its own use – presumably because it is profitable.

Saxo says it is “empowering” its clients, enabling them to take control of
their trading. “In addition to offering executable prices, the new order model
will include further enhancements to clients’ ability to have greater control
and transparency over their orders,” the firm claims. “These include user
defined price tolerances, and price improvements will be passed on to clients,
while allowing for partial fills.”

Kurt vom Scheidt, global
head of foreign exchange at Saxo says,?“FX as an asset class has seen
tremendous growth over the past decade and it is paramount that best execution
practices keep up with the evolving landscape. Technology and automation in
particular offer opportunities to continuously enhance and empower the end
client by giving them greater control and transparency over their orders but
also by boosting the breadth and depth of liquidity.”

Vom Scheidt then goes
on to claim that Saxo is “leading the industry efforts towards improving the efficiency
and transparency of the FX market” citing that it was (as was the case with
most of the industry) “an early adopter” of the FX Global Code of Conduct and
new best execution guidelines under MiFID II.

“At Saxo Bank we are doing
our part to drive the FX industry to improve because it is of utmost importance
to us that our clients are early beneficiaries of the heightened trust and
improved execution that enhanced transparency will bring,” vom Scheidt
continues. “This shift in order execution model is our latest of a number
of initiatives we have pursued this past year toward that end and we look
forward to the continuation of this process leading to better standards and
higher industry norms.”
    

Colin Lambert

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