Strategic alliance between industry leaders to deliver a combined HIN and international equities trading solution to better serve the online broking market.
Australia’s fastest-growing online stockbroker, OpenMarkets, and multi-asset class trading and investment specialist, Saxo Capital Markets, today announced a reciprocal partnership to provide each other with technology solutions to build upon their respective market leading offerings.
The partnership will allow OpenMarkets clients to have access to Saxo’s extensive list of global equities with multi-currency settlement, while Saxo clients will now be able to invest in Australian shares through a Holder Identification Number (HIN) structure.
This represents the collaboration of two Fintech powerhouses in the online broking industry in Australia, said Saxo Capital Markets Australia CEO, Ben Smoker.
We are providing the international equities trading engine and technology to OpenMarkets, giving them access to over 19,000 global stocks across 36 different exchanges.
For OpenMarkets, the alliance with Saxo allows it to become a truly global trading platform , bypassing significant development time and expense to provide its clients with a broader range of trading options. This includes the ability to:
- Buy and sell exchange-listed securities in global markets, including US, UK and the major European and Asian markets;
- View all assets in one portfolio screen;
- Trade through a single platform, where Australian equities are still maintained on HIN;
- Settle all trades (Australian and international) via the client’s one linked cash account
- Consolidate all transactions and holding data, and feed this data to SMSF and portfolio administration reporting platforms.
Conversely, the integration with OpenMarkets allows Saxo to increase trading activity for global shares through its international equities platform.
On the customer side, Saxo will be able to meet market demand for settlement of Australian equities into HIN from a multi-asset platform. This means that Saxo clients will be able to hold Australian stocks through the HIN structure provided by the ASX’s Clearing House Electronic Subregister System (CHESS), alongside other assets within Saxo’s trading platform.
The alliance between OpenMarkets and Saxo also breaks a historical model in the Australian broking industry, where HIN-based stockbrokers for Australian share trading and custodian-based brokers for international shares have always been segregated.
Saxo and OpenMarkets are effectively bridging this gap by providing the first integrated solution for the Australian market.
This is an alliance between two like-minded technology brokers that have complementary services and share a win-win philosophy towards third party integration. Our partnership with Saxo will result in us being able to offer trading in global securities from one cross-collateralised cash account and we will do this at competitive brokerage and fx rates, said OpenMarkets CEO, Andrea Marani.
This global markets trading offering, coupled with our range of reporting platform data feeds, will go a long way towards meeting the demand we are seeing from the SMSF market looking for global investment diversification.
Thanks to our new partner, Saxo will be the first broker to offer a HIN solution on a singular, consolidated multi-asset trading platform. This differentiates us from other multi-asset brokers who also offer access to local shares, but do not have HIN, Mr Smoker said.
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Open Thinking. Open Technology. Open Opportunities.
OpenMarkets Australia Limited (OpenMarkets) is an innovative digital stockbroker that provides execution-only brokerage services to retail traders, advisers and intermediaries, including the new breed of robos. It is a full market participant of ASX, Chi-X, NSX and SIM VSE, meaning it trades, clears and settles its own trades.
Founded in 2012 OpenMarkets has rapidly grown its average monthly trading turnover to $2-3.5 billion, consistently ranking in the top 15 brokers in Australia by volume.
In 2016 OpenMarkets received a 5-star CANSTAR rating for outstanding value in share trading, was awarded 3rd place winner in the Deloitte Technology Fast 50 in November and has recently been nominated in the 2017 Fintech Business Awards in the Platform Innovator of the Year category.
OpenMarkets sets itself apart from other brokers with its technology capabilities, open APIs and open philosophy towards third party integration. Its growing network includes banks, external trading platforms, administration platforms, managed accounts platforms and financial planning software.
About Saxo Capital Markets (Australia) Pty Ltd
Saxo Capital Markets (Australia) Pty Ltd ABN 32 110 128 286 AFSL 280372 (Saxo Capital Markets), is a wholly-owned subsidiary of Saxo Bank A/S, headquartered in Denmark, and regulated by the Danish Financial Supervisory Authority (FSA). Tradingfloor.com is a social trading facility and is also a property of Saxo Bank Group. Research and educational material is available via TradingFloor.com. Saxo Capital Markets is regulated by the Australian Securities & Investments Commission. For more information regarding TOCM and Saxo Capital Markets client money handling process, please visit https://www.home.saxo/en-au/legal/client-money-and-tocm/saxo-client-money-and-tocm