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According to a recent report by Saxo Bank, a Denmark-based multi-asset brokerage, there has been a significant increase in trading activities recorded in the last month of 2023.
The bank reported that its average daily volume had reached $6.4 billion, which is an 18% rise compared to $5.4 billion, which was an average daily volume in November 2023, as well as from $5.5 billion seen in December 2022.
The bank reports a surge in FX trading, stocks and commodities remain flat
According to the bank, its total monthly volume for forex trading in December reached $135 billion. The figure represents an 11% increase from $121 billion, as recorded in December 2022. Furthermore, it is 13.4% higher than the $119 billion seen a month earlier, in November 2023.
On the other hand, Saxo Bank also saw its commodities and stock business remain fairly flat. The average daily volume for stocks reached $9.2 billion, while commodities saw an ADV of $1.5 billion. In comparison, stocks reached the figure of $9 billion in November 2023, while commodities were at $1.6 billion during the same period. In other words, there is only a small change recorded — not nearly as impressive as the changes in FX volumes.
All in all, the Bank’s average daily volume across all asset classes went up last month, with a total AVD of $17.6 billion per day, relative to $16.5 billion in November 2023.
Saxo Bank recognized as a SIFI
Last year, Saxo Bank was designated as a Systematically Important Financial Institution (SIFI) by the Danish Financial Supervisory Authority (FSA). Essentially, this means that the regulator has recognized its crucial role in the local financial sector.
The classification is also important, as it placed the bank in a whole separate league of banks, insurance firms, and similar financial institutions whose potential failure could trigger a massive financial crisis.
In the financial landscape, financial entities that are considered “too big to fail” hold a critical position, especially when they are recognized as SIFIs. Because of that, they require additional regulatory oversight, which is much stricter and higher compared to any one regular bank. In addition to elevated regulatory oversight, there are also extra safeguards set in place, to ensure that entities like this can maintain their stability.
Doing so can prevent possible catastrophic consequences, which is all the more important, given the fact that the world is still far from a full recovery from the last economic crisis caused by the pandemic, geopolitical tensions, inflation, and other problems seen over the last several years.
For the time being, however, the bank seems to be expanding successfully, winning over more and more clients tanks to its enhanced services and flawless reputation. It has recently reached a major milestone of more than 1 million total active accounts, for the first time in the company’s 30+ year history.
