Saxo Bank Launches Stock Options for Its White Label Clients

Saxo Bank, the multi-asset broker, announced today the expansion of its white label offering with the introduction of stock options from April 2015. This follows the launch of stock options trading for Saxo's private and institutional clients in 2014.

The introduction of stock options to Saxo's white label offering will enable white label end clients to trade multiple asset classes from a single consolidated account and being able to use either stocks or bonds as collateral, as well as exercising options online.

Other advantages include the ability to utilise cross-product margining by putting up stocks as margin collateral for contract options trading, in addition to no minimum fee or carrying costs.

Saxo's white label broker clients will also benefit from a complete marketing and communication package facilitating the launch of the new product to end clients.

Commenting on the announcement, Patrice Henault, Head of Futures and Listed Options, Saxo Bank, said: "The launch reflects the growing appetite for stock options among both institutional and retail investors as indicated by the 4% rise in the number of derivatives traded on-exchange (ETDs) in 2014.

In particular, recent market Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term has provided attractive investment opportunities for options traders, while investors are becoming more aware of how they can hedge their exposure in asset classes such as equities or as a means of locking-in existing gains."

"The addition of equity options to our white label platform marks an important step in the development of Saxo's white label proposition, particularly at a time when appetite for this particular instrument is on the rise," Henault concluded.

Growing While Label Business

Saxo Bank sees the importance of developing this offering, as it says the white label business has become a cornerstone of its institutional segment with over ten new partnerships established in 2014, bringing the number of clients in this space to over 120.

The firm explained that pressures on costs, the inability to keep up with the pace of evolution in trading technology in-house and the need to develop multi-asset trading capabilities for their clients had contributed to the increase in Saxo Bank's white label clients.

At present, there are more than 30,000 financial products, including FX(spot, forwards and options), stocks, CFDs, commodities, futures, contract options and single stock options available on Saxo's Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term.