Notice to WL: Saxo Bank Alterations to US & Canadian Markets

In a recent notice to its WL partners, Saxo Bank shared alterations to the settlement cycle for the US and Canadian markets. So, effective May 27 for Canada and May 28 for the United States, these markets will transition from a T+2 to a T+1 settlement cycle.

This transition involves a shift in the value date for share purchases, reducing it from two days to one. Consequently, when purchasing US stocks under the new T+1 settlement, clients will experience a one-day reduction in interest or may accrue negative interest. This is because cash for US purchases is required one day earlier, while cash from EU sales is only available two days later.

Conversely, when selling US stocks under the T+1 settlement and simultaneously buying EU stocks under the T+2 settlement, clients may incur increased interest for one day. This results from the availability of cash from US sales one day earlier, contrasting with the requirement for cash in EU purchases two days later.

Notice to WL Partners: Saxo Bank Alterations to US & Canadian Markets

Notably, clients lacking sufficient cash reserves may face interest charges for negative Net Free Equity (NFE) and have to be against purchasing US stocks on the same day as selling EU stocks to avoid such fees.

To facilitate seamless transactions and assist partners in managing settlement requirements, Saxo Bank will introduce a “Settlement Ladder” in its trading platform, SPC. This tool will enable WL partners to monitor projected settlement amounts, empowering them to transfer funds proactively and in a timely manner.

Company Overview

Saxo Bank stands out as a premier multi-asset broker, offering exceptional research capabilities and an exceptional trading platform, along with an impressive array of over 70,000 tradable instruments, which include spot forex, FX options, NDFs, CFDs, stocks, stock options, exchange-traded funds, ETNs, futures, and 33,000 bonds. For engaged traders, Saxo Bank offers a comprehensive and immersive trading journey, boasting an extensive toolkit, research resources, and premium features.

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