Saxo Bank has entered China via a strategic partnership with Guotai Junan Securities, one of the country’s largest investment banks and securities traders.
The deal was structured by Saxo’s Singaporean division, Saxo Markets Singapore, which is run by CEO Adam Reynolds.
Under the deal, Guotai Junan’s Chinese clients will gain access to Saxo’s global markets offering.
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Saxo Bank and Guotai Junan join forces
Saxo is a privately held company that is majority owned by China’s Geely Group, and the broker already has offices in China’s principal financial hub Shanghai.
Nonetheless, the white-label deal with Guotai Junan is notable, as its one of the oldest and most established securities businesses in China, having been founded in 1992.
The Chinese firm currently offers its clients access to exchange-traded and OTC products in Shanghai, Shenzhen and Hong Kong. However, by partnering with Saxo it can now expand that offering to encompass CFDs on over 9000 instruments, including 29 equity Indices, and 190 FX pairs and crosses, as well as commodities and options.
Speaking about the new venture, Chief Executive of Saxo Singapore, Adam Reynolds said:
“Saxo is a leading digital trading and investment services provider. We believe our respective expertise can drive mutual innovations as we help more curious people get invested in the global financial markets”
He added that:
“I see a lot of win-win as we strengthen our collaborations in brokerage, settlement, asset and wealth management, custody, FX, futures, employee training and information exchange and other fields, and I look forward to the great collaboration ahead.”
Saxo recently reported a decline in FX volumes which were down by some – 6% month over month, white label and prime brokerage deals, with institutions such as Guotai Junan, are a way for the bank to boost its volumes and revenues, without the need to acquire retail clients en-masse, which is an expensive and competitive business.
Saxo is expanding white labels partnerships in Asia
This is the second white-label deal in Asia that we have reported on this week, and no doubt we will see similar deals throughout 2023.
Collaborations such as these can benefit both parties, increasing order flow for the provider and allowing the introducing broker to expand their product range and reach for minimal cost.
For those brokers who have robust balance sheets and the right technology, combined with regional representation and relationships, the fast-growing markets of Asia could offer significant rewards.