Finalto was excited to announce the launch of its ODP Liquidity Solution in early 2023. Finalto SA still remains just one of a small number of financial institutions in South Africa granted an ODP (Over-the-counter Derivative Product) licence – offering clients the peace of mind that any OTC business conducted utilising Finalto trading systems is fully regulated and compliant.

As the FSCA becomes more vigilant in penalising Financial Services Providers (FSPs) for violating FMA restrictions Finalto would like to reemphasise its position as a leader in the market making space for South Africa. Since the introduction of FMA 2016 South Africa’s financial regulator has not been shy in handing out fines for those continuing to offer derivative trading without the proper due diligence or licencing. On March 28th, 2024, the FSCA issued an official warning to traders “to exercise caution when conducting financial services business” with 14 specific FSPs who remain unlicenced to provide a suite of derivative trading options to their clients.

In light of these regulatory warnings Finalto reaffirms its position as a fully licenced and compliant market maker that continues to strive for reliability and excellence. CEO of Finalto South Africa, Dany Mawas commented on recent regulatory action, stating: “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.”

As well as a steadfast commitment to compliance, Finalto is privileged to be able to offer 20+ years of Fintech experience and expertise across a global spread of regulated jurisdictions. For FSPs looking for a trustworthy and sophisticated derivatives liquidity solution, Finalto remains a leading force for innovation and excellence in its financial services technology – with compliance being a cornerstone of the way it chooses to conduct its business.

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.”

If you would like to know more about how Finalto’s award winning liquidity solutions and regulatory positioning can benefit your derivative trading service, you can contact the Finalto sales team at dany.mawas@finalto.com.

About Finalto

Finalto is an award-winning provider of prime liquidity, trading and next-gen tech for hedge funds, brokers and financial institutions. Finalto has the scale and expertise to provide access to the worlds markets in an innovative and responsible way.

Finalto South Africa has an ODP licence and is regulated by the FSCA under license no. 46860.