Saxo Bank announced today (Monday) that it has been officially designated as a Systemically Important Financial Institution (SIFI) by the Danish Financial Supervisory Authority (FSA). Saxo has become Denmark's ninth such institution.
Saxo Is a Systemically Important Financial Institution
The SIFIs are Danish companies playing a significant role in the country's financial system and are critical to financial stability. These companies have to follow stringent capital requirements.
"We are proud to have built Saxo Bank into a solid institution over the past 30 years," said Kim Fournais, Saxo's Founder and CEO. "We have done this by focusing on servicing our clients and partners well – and having had success doing so, we have now been designated as a Systemically Important Financial Institution by the Danish FSA."
"It does come with an increased responsibility as Saxo Bank will adhere to even stricter regulatory and capital requirements, which we welcome. We look forward to further strengthening our position as a trusted and vital player in the financial industry, driving positive change, and shaping the future of investing."
Growing Demand for Saxo's Services
Headquartered in Denmark, Saxo has a larger global presence. On top of that, it operates a well-known brokerage brand and is a significant player in the trading industry.
The Danish company is planning to go public in Europe. Last year, it inked a deal with a blank-check company for the public listing on Euronext Amsterdam. However, the deal was terminated last December, citing the "timing [was] not optimal." the CEO, Fournais stated, adding that the company is keeping its options to become public open, Finance Magnates reported earlier.
Saxo generated DKK 711 million last year in profit despite the figure declining 6 percent. Its trading-related and interest earnings dropped by 2 percent to about DKK 4.4 billion.
Meanwhile, the demand for Saxo's services is growing this year. As the company officially revealed, the number of Saxo's clients surpassed one million earlier this month. Further, the client asset on the platform crossed $100 million last month.
