Saxo Capital Markets and OpenMarkets have announced a strategic alliance to deliver a combined holder identification number (HIN) and international equities fintech trading solution, which will address a need from SMSFs looking for global investment diversification.
The firms will provide each other with technology solutions to build upon their respective offerings, as well as allow OpenMarkets’ clients to have access to Saxo’s extensive list of global equities with multi-currency settlement, while Saxo clients will be able to invest in Australian shares though an HIN structure.
“The HIN structure normally appeals to SMSF investors, who feel a closer engagement with their Australian holdings when they have their name on them,” Saxo Capital Markets Australia chief executive Ben Smoker told selfmanagedsuper.
“This is what OpenMarkets is providing to Saxo.
“On the flipside, SMSF investors need to have a simple way to access international markets and that’s what Saxo Capital Markets is providing to OpenMarkets.”
Saxo will provide the international equities trading engine and technology to online stockbroker OpenMarkets, allowing access to over 19,000 global stocks across 36 different exchanges.
Smoker said both Saxo and OpenMarkets were aware of the demand for complementary services coming from their respective customer base.
“This is what motivated us to establish a fintech partnership that could benefit our respective customers,” he said.
The added functionality is scheduled to go live for both companies before the end of the year.
Under the alliance, OpenMarkets will become a truly global trading platform, bypassing significant development time and expense to provide its clients with a broader range of trading options.
This will include the ability to buy and sell exchange-listed securities in global markets, view all assets in one portfolio screen and trade through a single platform where Australian equities are still maintained on HIN.
In addition, there will be capability to settle all trades via the client’s one linked cash account, and consolidate all transactions and holding data, which is fed to SMSF and portfolio administration reporting platforms.
OpenMarkets chief executive Andrea Marani said the partnership was between two like-minded technology brokers that have complementary services and shared 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 foreign exchange rates,” Marani noted.
“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.”
Smoker added Saxo will be the first broker to offer a HIN solution on a singular, consolidated multi-asset trading platform as a result of the partnership.
