Saxo Bank shuts Turkey FX operations, closes Istanbul office
COPENHAGEN
The company’s office in Istanbul will be shut down, according to a statement released on June 28.
“We have decided to close our office in Istanbul to focus on very strong existing partners in the region. Setting up an office in Istanbul has been instrumental to achieve a wide distribution of our products via some of the most prestigious local financial institutions. Closing the office will enable us to reduce overall cost and complexity and re-set our ambitions on which countries we do direct retail business in and which we target via strategic partnerships,” said Matteo Cassina, the company’s global head of sales.
The company will give four months to customers to close their positions and accounts or transfer their positions to alternative companies, according to the statement.
Turkey has recently introduced new rules for the sector to minimize risks stemming from steep foreign exchange fluctuations, including a maximum leverage of 10x rather than 100x, and required a minimum client deposit of 50,000 Turkish Liras. These measures have, however, made operating in Turkey for forex companies difficult, according to sector experts. They noted that most of the existing forex investors had fewer than the 50,000-lira threshold.