Saxo Bank has entered into a new licensing agreement with Cboe Global Markets, Inc. (Nasdaq: CBOE). The new accord will see Saxo Bank utilize fifteen CBOE European national benchmark indices, setting its sights on the rollout of original products and its existing index offering.
As one of the largest exchange holding companies globally, Saxo Bank’s decision to integrate Cboe Europe’s benchmark indices helps advance its own agenda. Moving forward, Saxo will look to implement the indices for benchmarking against European markets, eventually targeting an entirely new product offering.
Guy Simpkin, Head of Business Development at Cboe Europe, commented: “Saxo Bank has been a leader in providing cutting-edge products and services to its clients and we are pleased they have chosen to utilise our benchmark indices. By licensing our indices, Saxo Bank clients now have access to real-time, high-quality data they need to better inform trading and investment decisions.”
A total of fifteen European European national benchmark indices will be included in the licensing agreement, including the popular FR 40, DE 30 and CH 20 indices. Moreover, the Saxo Trading platform will be offering these indices, complete with real-time and historical charts for its clientele.
Increasingly popular in Europe
The initiative looks to build on Saxo’s existing European offering. This stance was echoed by Søren Nedergaard, Global Head of CFD’s and Listed Products at Saxo Bank, who noted: “Saxo Bank is always looking to improve the trader’s position and with Cboe’s introduction of their European indices, Saxo Bank sees the opportunity to make a good indices product available. Furthermore, it is a strong base component for calculating the Saxo Bank Indication Of Interest price.”
The licensing agreement will only see a small portion of the total index offering at Cboe Europe’s disposal. Cboe Europe presently oversees a total of fifty-seven indices covering a total of fifteen markets. The indices represent a logical choice for Saxo Bank given their popularity and their performance that are closely in line with comparable benchmarks.
Indices such as these have grown increasingly popular for market participants in Europe. This includes both retail and institutional investors, investment banks, vendors, and asset managers, among others.
The indices are expected to be of great interest for Saxo Bank’s current client base. The Danish multi-asset brokerage did not provide any additional details its plans for new products as of yet however. In the interim, Saxo Trader users will be able to leverage the data to accurately compare market, regional, and sector performances across Europe.