Finalto Launches ODP Liquidity Solution

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 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