Saxo Bank changes definition of “Cash” across platforms
Multi-asset investment specialist Saxo Bank is making changes across all platforms (GO, PRO, and Investor), including a redefinition of ‘Cash’.
Saxo is revising the definition of ‘Cash’ on all platforms. A platform notification will be sent to all users to inform them of these changes.
In summary, Saxo will be moving accruals (financing and corporate action accruals) out of the cash value and into a new, separate section. As a result, clients’ ‘Cash’ balance may decrease after the release, while their account balance will remain unchanged.
Cash definition will be simplified to:
▪ Cash = Cash balance + Transactions not booked (the intraday transactions part only)
o Saxo is removing Financing accruals and Corporate action accruals out of Cash.
Saxo will introduce a new subtotal (‘bucket’) in balances called Total Accruals:
▪ Total accruals = Financing accruals + Corporate action accruals
o Financing accruals – Unrealized accruals including financing, borrowing cost, interest and others
o Corporate action accruals – Projected cash due as a result of corporate events including dividends, bond coupon, withholding taxes, and others
Saxo is not changing the definition of Account value – only how it adds numbers behind it.
• Now: Account value = Cash (old definition, incl accruals) + Value of positions
• Account value = Cash (new definition, excl. accruals) + Value of positions + Total accruals
• Saxo is not changing any risk definition of numbers like buying power, margin available or available for withdrawal.