Saxo Bank Boosts Transaction Revenue by Millions of Dollars per Day in China by Teaming with CDNetworks

At a glance

Company: Saxo Bank

Founded: 1992

Headquarters: Copenhagen, Denmark

Industry: Finance & Banking

CDN Services: Web Performance Suite

Key results

  • Recovered millions per day in China-based transactions
  • Dramatically improved customer experience across mainland China
  • Confidently able to sell white-label solution worldwide for increased revenues

Saxo Bank is a leading international investment bank that specializes in online global trading and investment. In addition to direct services provided to consumers and businesses, Saxo Bank developed a white-label solution called SaxoTrader that is used by many global financial institutions.

The multi award-winning SaxoTrader enables investors to trade Forex, CFDs, ETFs, Stocks, Futures and FX Forwards and Options from one, fully integrated online platform. SaxoTrader offers a wealth of market information and all of the state-of-the-art technical tools and features needed to trade successfully. The SaxoTrader platform comes in several forms – a Web-based application, a mobile application for Apple iOS and Google Android, and a desktop application for Microsoft Windows.

Saxo Bank’s executive team views the expansion of SaxoTrader into emerging markets as critical to the bank’s long-term strategic growth. “Our plan called for entry into China first,” said Latham. “From there, we see the platform grabbing hold throughout APAC.”

The challenge

As demand from investors and institutions within China to access the SaxoTrader platform grew significantly so did the need for accelerating the performance of the application in China. At issue was the latency caused by the distance between the Denmark-based datacenter and China. In addition, China’s vast geography and complex Internet peering caused even slower performance.

Fast transaction times are critical to stock, bond, and foreign exchange trading. As little as one second can result in lost revenue from incomplete or incorrect trades based on out-of-date market information. Saxo Bank also wanted to ensure the same customer experience in China that the SaxoTrader platform is known for around the world. Saxo Bank quickly realized that doing business in China needed a different approach.. 

The solution

Delivering Directly From China

Initially, Saxo Bank sought to host and serve SaxoTrader from a datacenter located within mainland China. However, after careful research, they concluded that a single datacenter would not meet their performance goals and therefore needed to look for other solutions.

The IT team from Saxo looked at several vendors, however, explained Latham, “They lacked the local presence we knew we needed in China.”

Saxo Bank’s IT team engaged CDNetworks to accelerate SaxoTrader in China initially, eventually branching out to other emerging markets. The combination of CDNetworks’ Web Performance Suite and its in-China personnel and infrastructure met Saxo’s needs.

CDNetworks is able to facilitate financial transactions for SaxoTrader with 25 local POPs (Points of Presence) throughout mainland China. CDNetworks is the only global CDN that can effectively accelerate web transactions including financial and eCommerce in China.

Saxo Bank performed extensive testing of the SaxoTrader Web- and Client-based application running on CDNetworks’ cloud-based infrastructure. Testing took place across multiple regions of China. “As a cloud-based service, the CDNetworks solution performed extremely fast without the need for costly datacenter build-out,” said Latham. “It also enables us to pursue other world regions in a fast and flexible manner.”

The results

In less than two weeks the Saxo Bank team, together with CDNetworks, was able to launch SaxoTrader in China. The company realized revenue gains of millions per day because latency-induced broken trades were effectively eliminated.

Once Saxo Bank’s IT team gained complete comfort with CDNetworks, they expanded the scope of their dynamic application delivery of the cloud-based infrastructure. “CDNetworks has helped us achieve our goal of successfully entering emerging markets with our flagship platform applications,” continued Latham. “I anticipate moving more of our application portfolio onto CDNetworks and expanding globally faster than originally anticipated.”

About Saxo Bank

Saxo Bank is a leading online trading and investment specialist. A fully licensed and regulated European bank, Saxo Bank enables private investors and institutional clients to trade FX, CFDs, ETFs, Stocks, Futures, Options and other derivatives via three specialized and fully integrated trading platforms; the browser-based SaxoWebTrader, the downloadable SaxoTrader and the SaxoMobileTrader application available in over 20 languages. Saxo Bank also offers professional portfolio and fund management through Saxo Asset Management who accommodates high-net worth private clients and institutional investors and provides banking services and advice to retail clients through Saxo Privatbank. The Saxo Bank Group is headquartered in Copenhagen with offices throughout Europe, Asia, Middle East, Latin America and Australia.

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