Saxo Bank
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| Saxo Bank A/S | |
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| Type | Private |
| Founded | 1992 |
| Headquarters |  Copenhagen, Denmark |
| Key people | Henrik Thufason, Chairman Florian Wendelstadt, Vice-Chairman Kim Fournais, Chief Executive Officer Lars Seier Christensen, Chief Executive Officer |
| Industry | Finance |
| Products | Investment Banking |
| Revenue | ▲DKK 1,002 Million (2006) |
| Net income | ▲DKK 144 Million (2006) |
| Employees | 1150+ (2008) |
| Website | www.saxobank.com |
Saxo Bank, a modestly-sized Danish niche player in financial markets, was founded in 1992 under the name “Midas Fondsmæglerselskab” by Lars Seier Christensen, Kim Fournais and Marc Hauschildt. The company featured prominently as one of the biggest Boiler Room operators in Denmark in the period 1995-1999. Still operating under the Midas-brand, the company was profiled in nationwide TV in the investigative documentary “Rapporten” about alleged fraudulent activities in financial markets and illegal high-pressure sales tactics [1]. Shortly after, the company was awarded a broking license by the Danish Financial Supervisory Authority, a decision that was widely regarded with suspicion by the financial community in Denmark.
It was probably in an effort to escape the past that the Midas brand was dropped in 2002 and replaced with Saxobank.
Saxo Bank is a specialized Danish investment bank founded in 1992 and is headquartered in Copenhagen, Denmark. The bank was awarded full European bank status in 2001.
The Bank is privately held with its co-founders, Kim Fournais and Lars Seier Christensen, holding majority stakes. Private Equity firm General Atlantic bought a minority stake in June 2005 and invested USD127 Million. September 2007 Saxo Bank announced acquisition of Swiss Synthesis Bank, a white label partner of Saxo Bank through four years. CEO Lars Seier Christensen argued the acquisition was perfect fit, matching the Saxo Bank 2010-strategy where presence in the major financial districts of the world is a key factor. In November Saxo Bank announced white label partnership with Citibank, constituting the largest deal in Saxo Banks history. Saxo Bank facilitates global capital markets trading and investing through its online trading platform. It offers a broad suite of investment banking products including Forex, Stocks, CFDs, Futures, Funds and Bonds. Private Wealth Management services are also offered to high net worth individuals and families. Roughly two-thirds of the Bank's activities are derived from partnerships with licensed financial intermediaries including banks, brokerage firms, FCMs and institutional trading partners.
[edit] Quick facts
- Saxo Bank started expanding its physical presence worldwide in 2006 and today has offices in London, Geneva, Zurich, Singapore and Marbella. Furthermore, the bank runs a representative office in Beijing and an IT development centre in St. Petersburg.
- Saxo Bank currently employs almost 1200 employees from 58 different countries.
- Saxo Bank is named after Saxo Grammaticus, a famous Danish warrior/theologian and alleged to be the first historian of the Danish people.
- As a form of advertisement, Saxo Bank distributed 10,000 copies of Ayn Rand's novel Atlas Shrugged which promotes capitalism and the free market.[citation needed]
[edit] Businesses
Saxo Bank's businesses can be broadly categorized into 3 areas: Private Clients, Institutional & White Label Partnership and Private Wealth Management.
Private Client services focus on enabling individuals to trade the different financial instruments online.
Institutional services include institutional trading services, introducing brokers and White Label Partnerships (WLP). The White Label Partnership business accounts for more than half of the bank's revenue providing an efficient, scalable re-distribution of the bank's core competencies to a broader public. In November 2007 Saxo Bank made a White Label Partnership agreement with Citibank, the biggest bank in the US. In total Saxo Bank has more than 100 White Label Partners and boasts clients in more than 177 countries. In a White Label Relationship, the trading platform and back office risk management and client account management systems are branded in the identity of the partner. The partner must be a licensed financial institution able to hold client funds, and appropriately regulated for securities, currency and derivatives trading in its local jurisdiction. Saxo Bank provides the technology and a suite of value-added business development, planning and strategic services while the white label partner provides on-the-ground distribution, sales, marketing and client servicing.
Private Wealth Management is a relatively new growth segment for the bank.
