Saxo Bank’s FX volume drops 23% in January

Copenhagen-based Saxo Bank reported its first monthly metrics for the new year, which showed a strong decline month-over-month.

The bank’s clients traded an average daily volume (ADV) of $4.9 billion, marking a 23% drop from the $6.4 billion in the previous month, coupled with a 6 percent year-over-year decrease from $5.2 billion in January 2023.

The total monthly FX volume for January 2024 stood at $106 billion, a 21% drop from $135 billion in December 2023, and a 9% fall compared to $115 billion a year ago.

However, Saxo Bank’s stocks and commodities business outperformed, yielding ADVs of $10 billion and $1.8 billion, respectively, in January 2024. This compares to $9.2 billion and $1.5 billion reported in December.

Overall, Saxo Bank’s average daily volume across all asset classes was down during January, reported at $17.1 billion per day, relative to $17.6 billion the month prior.

Saxo Bank has recently become a part of the growing FairXchange ecosystem to augment its data-driven communication with Liquidity Providers (LPs). In this collaboration, FairXchange is supplying Saxo Bank with its Horizon liquidity management platform.

Last year, the Danish Financial Supervisory Authority (FSA) designated Saxo Bank as a Systemically Important Financial Institution (SIFI), recognizing its crucial role in the financial system. This notable classification also places Saxo Bank in the league of banks, insurance companies, and other financial institutions whose potential failure poses a substantial risk of triggering a widespread financial crisis.

Widely recognized as “too big to fail,” SIFIs hold a critical position within the financial landscape, warranting heightened regulatory oversight and safeguards to ensure their stability and prevent catastrophic consequences.

Meanwhile, Saxo Bank won more clients with total active accounts crossing 1 million for the first time in the company’s +30-year history. Additionally, Saxo Bank managed client assets worth DKK 721 billion, a substantial increase from DKK 591 billion a year ago, which was positively impacted by net funding of cash and securities totaling DKK 79 billion.