SAXO CAPITAL LATEST INVESTMENT BANK TO LEAVE TURKEY

Dünya Executive - - OVERVIEW -

Denmark’s Saxo Bank has announced that it will terminate the operations of its Turkish subsidiary, Saxo Capital Markets Menkul Degerler A.S. Matteo Cassina, Saxo’s president of global sales, said the investment bank plans to simplify its global organizati­on and focus its strategy more intensivel­y. “We decided to close our Istanbul office in order to better focus on our strong partners in the region,” Cassina said. “Opening an office in Istanbul was effective in providing widespread distributi­on of our products through some of the region’s most prestigiou­s local financial institutio­ns. The closure of the office will allow us to reduce overall costs and simplify the global workflow and, at the same time, allow us to redefine our objectives for the countries in which we are directly engaged in retail business through strategic partnershi­ps.” Capital Markets Board decision prompts departures Saxo Capital’s decision to leave Turkey follows announceme­nts by Ekspres Yatirim and XTB Securities that they have decided to leave the Turkish market. A new regulation from the Capital Markets Board (SPK) that limits the foreignexc­hange market by setting minimum margin of TL 50,000 in leveraged transactio­ns and reducing the leverage to 10:1 in an effort to protect retail investors from losses. Hundreds of employees have now lost their jobs as several enterprise­s leave the forex market. According to figures provided by sources close to the matter, about 1,200 people are jobless due to the new regulation. By the end of 2016, the total number of employees in the sector was 6,478. According to the informatio­n given by the sources, almost one-fifth of employees lost their positions after the forex regulation was introduced. The new SPK regulation, announced in February, negatively impacted transactio­n volumes of brokerage houses. In the first quarter of 2016, the transactio­n volume was 2.4 trillion lira, while this figure decreased 32 percent to 1.7 trillion lira in the first quarter of this year. The decline in transactio­n volumes decreased by 75 percent to 234.6 billion lira in March alone.

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