Denmark’s Saxo Bank has opened its multi-asset platform to stock options trading for retail and institutional investors. The bank said this would enable clients both to consolidate their existing portfolios by allowing them to trade multiple asset classes from a single account, and to take advantage of Saxo Bank’s cross-product margining.
Alan Plaugmann, head of platforms and products at Saxo Bank, said that the addition of equity options to its platform marks an important step in the development of the Saxo proposition, and responds to the increased demand for this particular instrument.
“As investors are seeking more diversity in asset classes, instruments and financial services, we have built a flexible solution which caters both to the retail and institutional market segments, enabling our clients to trade equity options in a way that best enhances their individual investment strategies,” he said.
The launch reflects the growing appetite for stock options among both institutional and retail investors as indicated by a 6.4% rise in the number of derivatives traded on-exchange (ETDs) last year.
Recent market volatility has provided attractive investment opportunities for options traders, and investors are becoming more aware of how they can hedge their exposure in asset classes such as equities or use the instruments as a means of locking in existing gains.
Saxo Bank will initially provide direct access to the 200 most liquid stock options across the US, Europe and Asia Pacific. These will comprise the top 50 US stock options and ETF options; the top 100 European stock options; the top 20 Hong Kong stock options; and the top 30 Australian stock options. Over the course of the year, the Bank will expand its offering to include 350 stock options in total.
Saxo Bank has also signed a content-sharing agreement with the Options Industry Council (OIC) making OIC’s equity options educational materials available to Saxo Bank’s global client base.
There will be no minimum ticket fee or carrying cost. Clients will be able to use either stocks or bonds as collateral, as well as exercise options online with the bank offering multi-language service and support.
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