Just have some time so I extract from Saxo Bank's General Business Terms.
" shall mean a professional participant in the financial markets who con-tinuously offers purchase and sale prices for a financial instrument in order to buy and sell respectively in the event of interested Clients. Being a Market Maker Saxo Bank is in relation to a transaction the Client's im-mediate counterpart.
"OTC" shall mean any Contract concerning a commodity, security, currency or other fi-nancial instrument or property
, including any option, future, or CFD which is not traded on a regulated stock or commodity exchange but "over the counter" by Saxo Bank whether as a Market Maker
as described in Clause 16 or otherwise;
16.2 The Client is specifically made aware that in certain markets, including the foreign exchange markets, OTC foreign exchange options
and CFD Contracts, Saxo Bank may act as a Market Maker
16.3 Saxo Bank will, upon the Client's written request, in general disclose to the Client whether Saxo Bank may act as a Market Maker
in a certain in-strument.
16.4 When acting as a Market Maker
, Saxo Bank will under normal market circumstances quote the Cli-ent bid and ask prices.
16.6 The Client understands and accepts that Saxo Bank acts as a Market Maker
and, therefore it may be necessary for Saxo Bank to manage its available li-quidity by separating its clients into different liquid-ity pools where the pricing and available liquidity in each group may be independent of the other pools/groups. Liquidity separations can become rel-evant for clients whom, for example: have price agreements deviating from standard, use alternative trading tools (e.g. API), trade outside normal trad-ing hours, trade in odd sizes, make frequent use of resting orders that can require manual attention, frequently transact in multiple products and/or as-set classes, or have other similar features to their trading.
[Note: 16.6 actually relates to Saxo Bank offering different tiers of clients different bid / ask spreads: if you are a white-label partner of Saxo Bank, you will well know it.]
16.8 The Client accepts that Saxo Bank in such markets where Saxo Bank acts as Market Maker
, may hold positions that are contrary to positions of the Cli-ent, resulting in potential conflicts of interest be-tween Saxo Bank and the Client, cf. Clause 18.
16.9 In markets, where Saxo Bank acts as a Market Maker
, the Client accepts that Saxo Bank has no obligation to quote prices to clients at all times in any given market
, nor to quote such prices to cli-ents with a specific maximum spread.
[Note: 16.9 says Saxo Bank has the choice not to quote anything, so if it quotes, the prices are what they are willing to trade]
16.10 In markets, where Saxo Bank acts as a Market Maker
, Saxo Bank may or may not charge commis-sions. However, irrespective of whether or not Saxo Bank charges any commissions, the Client ac-cepts that Saxo Bank will seek to make additional profits out of its performance as a Market Maker
and the size of any such profits may be considera-ble if and when compared with the Client's margin deposit.
[Note: 16.10 means Saxo Bank has the room to trade for larger P&L]
16.13 Any commission costs, interest charges, costs associated to and included in the spreads quoted by Saxo Bank as a Market Maker
in certain mar-kets and other fees and charges will consequently influence the Client's trading result and will have a negative effect on the Client's trading perfor-mance compared to a situation if such commission costs, interest charges, costs associated to and in-cluded in the spreads did not apply.
16.14 Whilst dealing spreads and commissions are nor-mally considered moderate seen in relation to the value of the assets traded, such costs may be con-siderable when compared with the Client's margin deposit. As a consequence thereof the Client's margin deposit may be depleted by trading losses that the Client may incur and by the directly visible dealing costs such as commissions, interest charges and brokerage fees as well as the said not visible costs for the Client, caused by Saxo Bank's perfor-mance as a Market Maker
16.16 The Client is specifically made aware that in the area of market making in foreign exchange, OTC foreign exchange options, CFD Contracts and other OTC products, significant implied costs can arise as a consequence of the profits made by Saxo Bank performing in its capacity as a Market Maker
16.17 Saxo Bank's performance as a Market Maker
may negatively affect the Client's Account with Saxo Bank and the said implied costs are neither directly visible nor directly quantifiable for the Client at any time.
16.18 Saxo Bank is at no time obliged to disclose any details of its performance or income produced as a Market Maker or otherwise related to other com-missions, charges and fees.
16.19 The Client is specifically made aware that CFD Contracts may be OTC products quoted by Saxo Bank whilst operating as a Market Maker and not traded on a recognized stock exchange. As a result, the description above of the implied, not visible costs related to Saxo Bank's performance as a Mar-ket Maker
may also apply to any CFD Contract.
In Saxo Bank's Conflicts of Interest Policy,
2.1 Saxo Bank hereby identifies and discloses a range of circumstances which may give rise to a conflict of interest and potentially but not necessarily be detrimental to the interests of one or more clients. Such a conflict of interest may arise if Saxo Bank, or any person directly or indirectly controlled by Saxo Bank or a cli-ent, is likely to make a financial gain, or avoid a financial loss, at the expense of a client
. Saxo Bank will manage conflicts of interest fairly.
2.2 Saxo Bank has identified the following circum- stances which may give rise to a conflict of in-terest:
A. Saxo Bank may provide advice to clients whose interests may be in conflict or competition with other clients’ interests;
B. Saxo Bank may have an interest that is contrary to clients’ transactions, e.g. when clients trade in markets where Saxo Bank acts as a market maker
or when Saxo Bank wishes to invest in the same instrument as a client;
However, Saxo Bank does not have a policy of how to handle this conflicts of interest.