Copenhagen based multi asset broker Saxo Bank has announced that it has decided to end operations through its Turkish subsidiary, Saxo Capital Markets Menkul Değerler A/Ş, to reduce complexity in the organization and bolster relationships with strong partners in Turkey.
The company’s office in Istanbul will be shut down.
Saxo Bank had opened its Istanbul office in 2013, at a time when Turkey was a growing power in retail forex trading. In 2015 the company brought in Turkish executive Savas Divanlioglu, formerly CEO of Citi Securities Turkey, to head the Istanbul operation.
However new rules passed earlier this year in Turkey, including maximum leverage of 10x and requiring minimum client deposits of TRY 50,000 (about USD $12,000) have made operating in Turkey a much more difficult proposition. The new rules were put in place by the Turkish government as part of measures taken to stem speculation in the depreciating Turkish Lira.
Matteo Cassina, Global Head of Sales, commented:
We have decided to close our office in Istanbul to focus on very strong existing partners in the region. Setting up an office in Istanbul has been instrumental to achieve a wide distribution of our products via some of the most prestigious local financial institutions. Closing the office will enable us to reduce overall cost and complexity and re-set our ambitions on which countries we do direct retail business in and which we target via strategic partnerships.
Saxo will continue to be very active in the Turkish market through partnerships with local leaders with a strong brand, capital and distribution.
Today, Saxo Bank has more than 100 white label partners offering their end-clients access to global capital markets through its trading platform, technology and market access.