Saxo may seek licence
(17 June 2008 – Australia) Saxo, the Danish bank that has injected money into troubled Australian broker, Tricom, may seek an Australian banking licence.
Saxo chief executive, Lars Christensen, said that if the bank succeeds in buying the broker it will apply for an Australian banking licence.
He said that the long-term goal was to apply for a local banking licence when it took full control of the broker.
Saxo is currently operating in Australia as a representative of a foreign bank and would consider buying 100 percent of the broker in the future.
Christensen said that owing 100 percent of a broker is the most logical course of action for a bank.
The capital injection deal for Tricom includes the option to buy out the other investors over the next few years.
The A$20 million capital injection into to Tricom is specifically on the basis that the bank has A$50 million balance sheet and it is quarantined from any fallout from the broker's stock lending business.
Christensen added that buying into Tricom would provide a platform for it to expand the bank’s business in Australia, including increasing its business in new share market listings for smaller companies.
He believes there are synergies involved in Saxo’s deep bank of technology and Tricom’s richness in quality advisers.
Saxo specialises in providing white-label online systems for trading products such as currency and contracts-for-difference to brokers and finance houses.
He said that the long-term goal was to apply for a local banking licence when it took full control of the broker.
Saxo is currently operating in Australia as a representative of a foreign bank and would consider buying 100 percent of the broker in the future.
Christensen said that owing 100 percent of a broker is the most logical course of action for a bank.
The capital injection deal for Tricom includes the option to buy out the other investors over the next few years.
The A$20 million capital injection into to Tricom is specifically on the basis that the bank has A$50 million balance sheet and it is quarantined from any fallout from the broker's stock lending business.
Christensen added that buying into Tricom would provide a platform for it to expand the bank’s business in Australia, including increasing its business in new share market listings for smaller companies.
He believes there are synergies involved in Saxo’s deep bank of technology and Tricom’s richness in quality advisers.
Saxo specialises in providing white-label online systems for trading products such as currency and contracts-for-difference to brokers and finance houses.
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