Finalto was excited to announce the launch of the ODP Liquidity Solution in early 2023. Finalto SA still remains one of only a handful of financial institutions in South Africa to be licensed as an ODP (Over-the-counter Derivative Product) – offering clients peace of mind Please note that any OTC business conducted using Finalto trading systems is fully regulated and compliant.
As the FSCA becomes more vigilant in penalizing Financial Service Providers (FSPs) for breaching FMA restrictions, Finalto would like to re-emphasize its position as a market leader creating space for South Africa. Since the introduction of the FMA 2016, South Africa’s financial regulator has not hesitated to impose fines on those who continue to offer derivatives trading without proper due diligence or licensing. On 28 March 2024, the FSCA issued a formal warning to traders to ‘take care when conducting financial services business’ with 14 specific FSPs remaining unlicensed to provide a range of derivatives trading options to their clients.
In light of these regulatory warnings, Finalto reaffirms its position as a fully licensed and compliant market maker that continues to strive for credibility and excellence. Finalto South Africa CEO Dany Mawas commented on the recent regulatory action, stating: “In light of the evolving ODP requirements in South Africa, it is imperative that FSPs remain compliant. We have noted recent penalties imposed by the FSCA on unauthorized OTC activities. With Finalto’s extensive experience in fintech spanning over two decades, combined with a solid reputation for reliability and trustworthiness, we are uniquely positioned to offer an FSCA-approved regulatory umbrella to any local FSP seeking peace of mind in a regulated landscape. Compliance is non-negotiable.”
In addition to a firm 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 reliable and sophisticated derivatives liquidity solution, Finalto remains a leading force for innovation and excellence in its financial services technology – with compliance at the cornerstone of how it chooses to conduct business.
Mawas went on to state that: “Local South African FSPs looking for a derivatives liquidity solution amid regulatory scrutiny can find reassurance in the FSCA approved ODP liquidity solution. It’s not just about offering a solution. it is about providing tranquility in a regulated landscape. Navigating the complexities of financial regulations requires a partner you can trust. Finalto brings not only expertise, but also the assurance of FSCA approval, ensuring our customers stay ahead in a compliant manner, even in the face of evolving regulations.”
If you would like to learn more about how Finalto’s award-winning liquidity solutions and regulatory positioning can benefit your derivatives trading service, please contact Finalto’s sales team at dany.mawas@finalto.com.
About Finalto
Finalto is an award-winning provider of leading liquidity, trading and next-generation technology for hedge funds, broker-dealers and financial institutions. Finalto has the scale and expertise to provide access to global markets in an innovative and responsible way.
Finalto South Africa is ODP licensed and regulated by FSCA under license no. 46860.