Finalto launches ODP liquidity solution in South Africa amid regulatory tightening

abdelaziz Fathi

Trading software and liquidity services provider Finalto has gone live with its Over-the-counter Derivative Product (ODP) Liquidity Solution in South Africa in early 2023.

Finalto Leads the way in ODP Compliance in South Africa

As one of the few financial institutions in South Africa to hold an ODP license, Finalto assures that its trading systems for over-the-counter derivatives are fully regulated and compliant with local laws.

Forex brokers in South Africa are overseen by the financial sector conduct authority, FSCA, which approves the platforms that can operate within the jurisdiction. The powerful watchdog handles the issuance of licenses and can sanction companies that violate guidelines of the nation’s dual regulation system.

The Financial Sector Conduct Authority (FSCA) of South Africa has recently intensified its efforts to enforce compliance among Financial Services Providers (FSPs) with the Financial Markets Act (FMA) of 2016. On March 28, 2024, the FSCA issued a warning against 14 specific FSPs that remain unlicensed to offer derivative trading options, highlighting the risks associated with unregulated financial activities.

In response to the FSCA’s actions, Finalto has reiterated its status as a licensed market maker, committed to the standards of reliability and regulatory compliance.

Dany Mawas, CEO of Finalto South Africa, stated, “In light of the evolving ODP requirements in South Africa, it’s imperative for FSPs to stay compliant. We’ve observed recent penalties imposed by the FSCA on unauthorized OTC activities. With Finalto’s extensive experience in fintech spanning over two decades, coupled with a solid reputation for credibility and trustworthiness, we are uniquely positioned to offer an FSCA-approved regulatory umbrella to any local FSP looking for peace of mind in a regulated landscape. Compliance is non-negotiable.”

Finalto also boasts over two decades of fintech experience and expertise across a global spread of regulated jurisdictions. For FSPs in search of a compliant partner, Finalto continues to lead the way in financial services technology, innovation, and regulatory adherence.

Mawas went on to state that: “Local South African FSPs seeking a derivatives liquidity solution amidst regulatory scrutiny can find assurance in our FSCA-approved ODP liquidity solution. It’s not just about offering a solution; it’s about offering peace of mind in a regulated landscape. Navigating the complexities of financial regulations demands a partner you can trust. Finalto brings not only expertise but also the assurance of FSCA approval, ensuring our clients stay ahead in a compliant manner, even in the face of evolving regulations.”

South Africa enjoys a strong and well-organized financial market and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors. The country itself is a diverse market that is largely devoid of the market saturation seen in other jurisdictions such as Europe.

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