Introducing Order Driven Execution in November 2016

In an increasingly complex reporting and compliance environment, institutions must position themselves to address and adhere to regulatory changes, requiring additional compliance and technology spend.

We are constantly enhancing your solution to ensure that you keep ahead of the market and develop your business further. From October Saxo will introduce Order Driven Execution for FX Spot, FX Forwards and CFDs, meaning that the way clients trade requests are executed will change from a Quote Driven Model to an Order Driven Model.

Saxo’s early adoption of best practice and the forthcoming release of the FX Global Code are the key drivers for this improvement to the platform.

Overview & Scope

The way that Saxo executes client trade requests is changing from a Quote Driven Model (green pricing) to an Order Driven Model (Quick Trade).  This will apply to FX Spot, FX Forwards and CFD Indices, Commodities, Interest Rates and Bonds. FX Options will continue to trade on a Quote Driven Model.

With the introduction of order driven execution, the trade button colours in the trading platforms will use a new convention where red will be used for sell buttons and blue for buy buttons (as already used in SaxoTraderGO when placing orders). This means that under normal market conditions, the trade buttons in the Trade Ticket and the Trade Board will be red and blue instead of green.

What is an Order Driven Model?

An Order Driven Model provides an executable price provided to Saxo clients that is based on Saxo’s own liquidity, in addition to liquidity available on a DMA basis in the broader market. The client is provided with greater control over the way that their order is traded through user-defined Price Tolerance, with the potential to benefit from price improvements if the market moves in the client’s favour within this tolerance.
An Order Driven Model may result in partial fills, but under normal market conditions a Market IOC order will be filled in full immediately.

Why is Saxo changing to an Order Driven Model?

  • To be more transparent in the way that Saxo handles client orders. Early adoption of best practice and the forthcoming release of the FX Global Code are the key drivers in defining ourselves as a transparent and responsible FX and CFD trading provider.
  • To extend the breadth of FX liquidity available to our clients. Saxo will be able to connect to a broader set of market venues (i.e. ECNs) that typically only operate under an Order Driven Model.
  • Removing the ‘Liquidity Mirage’ by not showing a top of book price to all clients simultaneously but rather representing a price that must be dictated based on order size and liquidity available in the market at that time.
  • Better alignment of FX Spot/Forward and CFD Indices, Commodity, Interest Rate and Bond products with the order execution methodologies of other asset classes.
  • To enhance FX functionality with the introduction of partial fills, user-defined tolerances and price improvements. Offering our clients greater access, transparency and control helps to continue to democratise investment and trading.

More information is coming soon. Please contact your account manager if you have any questions.


Saxo Capital Markets UK Limited is part of the Saxo Bank A/S Group of companies, winners of:

Saxo Capital Markets UK Awards

This material should be considered as a marketing communication under the Financial Conduct Authority's rules. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, nor is it subject to any prohibition on dealing ahead of the dissemination of investment research. Saxo Capital Markets UK Limited ("SCML") undertakes reasonable efforts to ensure that any information published in this communication is reliable. SCML makes no representation or warranty, or assumes no liability, for the accuracy or completeness of any information contained in in this communication.

SCML provides an execution only service and this communication does not take into account any particular recipient's investment objectives, special investment goals, financial situation, and special needs and demands and nothing herein is intended as a recommendation for any recipient to invest or divest in a particular manner and SCML assumes no liability for any recipient sustaining a loss from trading in accordance with a perceived recommendation.

Saxo Capital Markets UK Limited is a company authorised and regulated by the Financial Conduct Authority, registration Firm Reference Number 551422. Registered address: 26th Floor, 40 Bank Street, Canary Wharf, London E14 5DA. Company number 7413871.