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Denmark’s Saxo Bank to cut jobs as trading stalls

Nov 27 (Reuters) – Denmark‘s Saxo Bank is to cut its workforce by 17.5 percent because of reduced trading activity, a source close to the company told Reuters.

A total of 266 of the bank‘s 1,513 employees will lose their jobs,” the source said. The bank declined to comment until after it had released a statement later on Tuesday.

Co-founder and joint Chief Executive Kim Fournais told Reuters in a recent interview that the bank had never had as many clients, but that customers had never traded as little as they do currently.

The online broker has said that tougher capital requirements for banks and new limits on the ability of its clients to gear their positions by borrowing against assets had hurt trading volumes in asset classes ranging from currencies and commodities to interest rates and stocks.

Tougher competition and spread compression have also taken a their toll on the online trading sector, while investors’ risk appetite remains low.

Saxo Bank’s founders, Fournais and Lars Seier Christensen, each owns 30 percent of the bank, with private equity firm TPG Capital holding 30 percent and small shareholders and employees holding the rest of the stock

 

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