White Label Clients White Label Clients
Monthly Notification, Saxo Bank
28 November 2017

Adjustments to the calculation used for the funding ratio

​Based on a counterpart credit evaluation, Saxo Bank has agreed on a funding and risk management model with you as a White Label Client. The model specifies ...

​Based on a counterpart credit evaluation, Saxo Bank has agreed on a funding and risk management model with you as a White Label Client. The model specifies which level of funding you are required to have with Saxo Bank in support of the relationship at any given time and which degrees of freedom you are able to give to your clients within the business conducted on Saxo Bank’s infrastructure. You can find an overview of the available models and the calculation details here.

The calculation used for the funding ratio under this model has been adjusted. The adjustment is important for the integrity of the model which now takes into consideration:

  • negative client account balances, requiring full funding irrespective of funding ratio
  • any unrealised P/L on the client accounts, requiring full funding irrespective of funding ratio

Given the objective of the funding ratio, these are natural inclusions and only impact clients in marginal cases where they do not close out unrealised losses, or realise losses which make their accounts balance negative.
If your funding ratio changes so that it triggers a funding call, you will be contacted separately.