Saxo Bank is a leading provider of online trading and investment services for institutional clients. It offers access to global markets through its powerful trading platforms and suite of trading products. The document provides an overview of Saxo Bank's history, services, platforms, reporting capabilities, and process for setting up institutional client accounts. It highlights Saxo Bank's focus on institutional clients, reliability, and back-office support services.

1. Trading Services for Institutional Clients
Patrick A.H. Mortensen, Director
March 2010

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4. The Saxo Bank story
Saxo Bank is a leading facilitator in the global capital markets, aggregating liquidity,
offering access to exchanges around the world and providing its powerful suite of
products and platforms to institutional clients, private clients, partners, banks and
brokerages.
Saxo Bank enters into the online FX Saxo Bank is
market with www.forextrading.com approved as an EU- Saxo Bank’s opens first
built on an aggressive IT-based regulated bank by the global offices in London
strategy. Danish FSA. and Singapore.
Saxo Bank is SaxoTrader’s predecessor
General Atlantic
established in MITS, which enabled online
LLC, a global private equity
September 1992 FX trade execution, is launched.
investment firm, invests DKK
by Kim Fournais 728 million (about USD 127
and Lars Seier million) in Saxo Bank.
Christensen.
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5. ABOUT SAXO
employees, 560 of which
are based at HQ in Copenhagen, DK
• Offices in
of all staff are full-time IT staff,
and stake in Initto acquired
nationalities
• Clients in
• Daily average FX turnover approx.
• Approx. in Assets
Under Management (100% increase
since Dec. 2008)
: FX Spot, FX
Forwards, FX Options, CFD, CFD DMA,
CFD Commodities, Futures, Shares,
ETF/ETCs and Off-line bonds
(SaxoWebTrader,
SaxoMobileTrader & SaxoTrader)
accessible through one account
Selection of recent awards
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6. WHY SAXO
to online trading business and a focus on institutional
clients
• Reliability of working with a bank
online trading: FX, Options, CFDs,
Stocks, Futures and ETFs
• Back-office administrative services with real-time and
comprehensive reporting
• Trading infrastructure supporting and
• Three platforms
accessible through one account
• Streaming, real-time data and market updates
(B2B FIX 4.3)
services
• CLS 3rd party member
pricing and
Account Management and Sales Trading
Fabian Cancellara, 2009 UCI Road World Champion, Time Trial
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8. Saxo Bank’s suite of products support easy trading in multiple assets
• 150+ crosses • 23 exchanges • 22 exchanges • Traded offline • 15 exchanges
• Spot • 6,000+ CFDs • 11,500+ Stocks • Over 250 sovereign, • 450+ instruments
• Forward outrights • CFDs DMA • Real-time access government and • Online and offline
• Streaming FX options (Direct Market Access) • 850 ETFs/ETCs corporate bonds commodities trading
• Spot gold and silver • 15 index-tracking CFDs
• Main CFD Commodities
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9. Three trading platforms - integrated into one account
 The multi-award winning SaxoTrader is a comprehensive,
downloadable trading platform, covering all asset classes.
 Offers advanced charting, multiple order types, real-time
account data, price alerts, chat, research and more.
 Fast execution (streaming of 3-4 prices per second on 160
currency crosses)
 Reliable trading environment (99,95 % avg. uptime in 2009)
 The SaxoWebTrader is a web-based trading platform for
anywhere, anytime market access.
 Supports charts, multiple order types, research, chat, real-time
account data. Operates on Internet Explorer, Firefox and Safari.
 The SaxoMobileTrader gives 'on the go' access to account data
through a browser enabled mobile device including iPhone and
BlackBerry.
 Read news and analysis, place or change orders and trade.

10. Reporting and Monitoring (In the trading platforms)
Real/time Account Summary ● Cross Product Margin Calculation ● Open Positions Module ● Open
Orders Module ● Trades Booked ● Roll-overs ● Trades Executed ● Account Statement ● Corporate
Actions ● Activity Log ● Full Omnibus Overview ● Sub-accounts ● Multiple Currency Set-up

11. Reporting and Monitoring (Back-office integration)
 Flat text files, sampling all parameters of all trading and account activities during the past 24
trading hours
 Formatted in CSV and XML
 More than 100 different types of files reporting everything from trade execution and bookkeeping
activity to open market risk
 The files are generated daily and are delivered via FTP or by email
 Available through FTP and email
 Used for integration of trading with Saxo Bank into one consolidated risk management/front office
environment
 Instant trade matching
 Automation of Give-Ups

12. FIX API Services (B2B FIX 4.3)
• Based on
• Dedicated in-house FIX Support Group
monitoring connections
and round-trip
times ranging from 42 ms to 62 ms
ranging between
• Supports End-of-day files for reporting
• Supports both omnibus and client-level
risk management
• +150 and order placement in
(19 exchanges), (20
exchanges) and (15 exchanges)
• Competitive FX price feed
• Supporting web service APIs on account
details
• Server traffic routed through an
encrypted
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13. Saxo Bank as Executing Broker
 Aggregation of collateral requirements with existing FXPB
 Saxo Bank needs only a Counterparty Agreement Notice “Notice” (drafted by FXPB and reviewed
and approved by Saxo)
 Consolidate and customize reporting through the existing FXPB
 Trade allocation, confirmation and settlement consolidated with FXPB
 Primary documentation required only with the FXPB
 Access to Saxo Bank pricing and liquidity in +150 FX crosses
 Saxo Bank has existing relations with several Teir-1 FX banks
 Maximum tenor
 Settlement and or open position limits
 Account trading currency
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14. Continuous Linked Settlement (CLS)
 Efficient management of liquidity and
reduction of credit risk
 No prime brokerage fees
 Saving costs of netting exposures between
counterparts
 Multilateral netting effect
 Reduction in operational risk
Source: CLS-Group publications
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15. Trading line and credit line (only FX)
Based on a credit evaluation, Saxo Bank will establish a FX trading line, allowing the partner to trade
with Saxo Bank, on our platform and using our prices, without having to deposit collateral with the Bank.
A Saxo Bank trading line consists of a pre-defined maximum net exposure, i.e. sum of the nominal value
of open FX positions. For instance, a partner with a trading line of USD 25,000,000 would be able to
enter into positions with a total exposure of USD 25,000,000.
 Specific settlement policies are defined on a client-by-client basis
 Opening a trading line carries a financing cost
In conjunction with the trading line, Saxo Bank will establish a credit line. The credit line governs the
actual account status a partner can have on the trading line account.
For instance, a trading line account with a credit line of USD 200,000 would allow a partner to have a
loss of up to USD 200,000.
 Reach of credit lines will issue a cash call, requiering a cash deposit
 Specific rules on cash calls, trigger levels and handling of exposures depend on the trading
relationship and the credit evaluation
 Opening a credit line are subject to an interest charge
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17. Account Management
The dedicated Saxo Bank Account Manager is responsible for the overall institutional
client relationship and is the to all other relevant
departments within Saxo Bank
Single point of contact for non-trade related
requests, such as:
 Build and develop client relationship
 Introduce client to Saxo offering
 Handle escalation of client requests and
queries with full ownership
 Account set-up
 Trading terms
 Communicate new Saxo Bank features
and services
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18. Sales Trading
Saxo Bank allocates Sales Traders to all institutional clients. Depending on the needs of
the Institutional Client the relationship with the Sales Trader can range from handling
trade requests to discussing market movements and trade ideas.
Main point of contact for trade related
requests, such as:
 Offline Trading
 Quoting and placing trades
 Changing orders
 Provide trade ideas
 Trade activity explanation
 Handle trading related complaints
 Ensure MiFiD compliance
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19. Setting the business in motion
Evaluating joint Relevant Saxo Bank Legal Implementation
business documentation Landscape
potential
•Understanding •License, if •Institutional •Set-up trading
of Saxo Bank applicable Trading infrastructure
offering and •Certificate of Agreement •Introduction
institutional incorporation •ISDA Master to Account
client needs •Signatory list Agreement Management
•Negotiation of (could be in •ISDA •Introduction
trading terms other Schedule to Sales
corporate •Or “Notice” Trading
documents) from FX Prime
•Proof of Broker
identity for
authorized
signatories
•Corporate
Ownership
Disclosure
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