Finalto launches ODP Liquidity Solution for FX and CFD brokers in South Africa

Rick Steves

OTC derivatives brokers in South Africa can leverage Finalto, a FAIS and ODP Licence holder, to provide derivative products, using its market-making abilities, providing low cost of trading.

Finalto has announced the launch of its ODP Liquidity Solution for brokers of over-the-counter (OTC) derivative products in South Africa.

The provider of trading and liquidity solutions to the FX and CFD industry is one of a few financial institutions in the jurisdiction with an ODP (Over-the-counter Derivative Product) license, having secured it in March 2022.

The ODP license follows the introduction of the Financial Markets Act in 2016, a legislation meant to regulate OTC derivative markets in the region in order to reduce the risk by creating a safer environment for those taking part in the market.

The regulation requires brokers to enhance due diligence as trading speculative financial products is high risk and it enforces strict capital adequacy measures. Brokers are also ordered to maintain records and controls for end-of-day transaction reporting, to ensure that CFD trading is transparent and that the ODP broker is operating responsibly.

That’s where Finalto comes in with its offering for OTC derivatives brokers in South Africa, who can leverage the FAIS and ODP Licence holder to provide derivative products, using its market-making abilities, providing low cost of trading.

Finalto offers two solutions for South Africa CFD brokers

Option One
 Includes the ODP partnership to enable brokers to offer derivative products to clients
 Market-leading liquidity provision
 Access to Finalto’s complete turnkey trading system Finalto 360. Known as Brokerage in a Box, it provides 5 modules specifically designed to answer all of the needs of a new or growing brokerage.

Option Two
 Includes the ODP partnership to enable brokers to offer derivative products to clients
 Market-leading liquidity provision
 Support and integrate with your own front end trading technology

Finalto becomes true worldwide provider of pricing and technology

The news follows Finalto’s connectivity expansion into NY4 and SG3, which establishes the firm as a true worldwide provider of pricing and technology.

Finalto already offers trading technology and liquidity solutions to over 600 clients, from more than 80 countries, spanning retail brokers, banks, hedge funds, professional traders, and asset managers. But the connectivity expansion will likely open many doors.

The connectivity expansion into NY4 and SG3 will also open up opportunities for both sell-side and buy-side firms as the sizable move puts Finalto further ahead of its competition.

In order to ascertain the added value of NY4 and SG3 into Finalto’s offering, FinanceFeeds spoke with Paul Groves, Head of Sales at Finalto Europe, in an interview published last week.

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