10/03/2023 Finalto is excited to announce the launch of its ODP
Liquidity Solution, as one of a small number of financial institutions in the South Africa
with an ODP (Over-the-counter Derivative Product) licence. Since the introduction of FMA
2016, a limited number of providers have had a licence to market, price and execute
derivative products such as CFDs. The licence was issued to institutions with a high
priority for compliance, responsible ways of engaging with clients, access to deep liquidity
and a good technology and platform offering. Finalto was awarded its ODP licence in March
2022, joining a limited number of financial services providers that were able to meet the
high bar set by regulators. What Are The Regulations? The purpose of
this new legislation (FMA 2016) is to regulate OTC derivative markets in the region. The
goal of new regulatory framework for OTC derivatives is to reduce the risk by creating a
safer environment for those taking part in the market. The ODP regulation imposes on broker
additional due diligence requirements; as trading speculative financial products is high
risk and it enforces strict capital adequacy measures. It also puts the onus on the broker
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. Finalto is a FAIS
and ODP Licence holder, in South Africa. The ODP licence is issued to credible institutions
to market and contract as principals in CFDs, and Finalto was proud to be among the first
institutions to meet the criteria. Our Solution Finalto is offering
brokers in South Africa the opportunity to partner with us to provide derivative products,
using our market making abilities providing low cost of trading. As a liquidity provider
with an ODP licence, brokers can partner with us to offer clients best price with our
solutions. Finalto is offering two types of solutions, to provide options for all types of
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 is committed to providing the next level financial services to South Africa and is
working hard to ensure it meets the needs of brokers with its locally-based and experienced
client servicing team and international market-making experience. Get in touch to discuss
your needs or find out more at:
ZA@Finalto.com
Or book an appointment with one of our specialist team
at:
https://calendly.com/finalto-south-africa/odp-liquidity-solution