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.

  • Read this next

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

    Fundamental Analysis

    Global FX Market Summary: EUR, USD March 1st, 2024

    The ISM’s February Manufacturing PMI is expected to show a slight increase, but remain below the expansionary threshold, while inflationary pressures persist and a Fed rate cut in June is still possible.