SAXO CAPITAL LATEST INVESTMENT BANK TO LEAVE TURKEY
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.