Only 4 employees including the CEO,Pedro Borges who is the responsible for Saxo’s operation in Brazil are building up an eletronic platform for Brazilian institutional investors willing to trade assets in other countries.
Saxo’s target are hedge funds and funds responsible for family fortunes. Saxo had last februrary of 2012, authorization from the Brazilian Central Bank to open a representation office in Brazil. Pedro Borges said that this was the easiest and fastest way to start Saxos operation in Brazil. Saxo arrived in Brazil with a extremely lean structure.
With 4 employees and a small capital base ( roughly 3 million DKK) Saxo has just opened its office at Faria Lima Avenue, one of the most sought business areas of São Paulo. According to Pedro Borges there are plans to open a bank or a local brokerage company, but this step will only be given in another moment. For the moment Saxo’s goal in Brazil is to close deals with resource managers and enable them to use Saxo’s platform, but they will have the possibiliyy to use and market their own services with their own brand.
The access to Saxo’s system is free, but Saxo gets a comission everytime a deal is made.According to Borges, the process of reduction of the interest rates in Brazil over the past few years played a big role in the decision of Saxo opening an office in Brazil. He adds that investors will look even more to diversify their assets.
Saxo expects in three years that half of Latin American revenues- comprised by the operations in Latin America and the Iberian peninsula- comes from Brazil.