More people are becoming interested in NDFs, but there is a caveat...
As part of our commitment to bring interesting and innovative opportunities to our clients Finalto offers NDF assets within our trading ecosystems. To understand how this exciting asset class fits into your strategy, Finalto sat down with its Head of Liquidity, Antony Parsons. In this interview we explore what NDFs are and why they and how they solve liquidity issues for less accessible currency pairs.
What is an NDF?
NDF stands for, ‘non-deliverable forward’. They are a type of forward contract used in foreign exchange markets. When trading an NDF, counterparties agree to settle the difference between the contracted NDF rate and the prevailing spot exchange rate on a specified future date. The key characteristic behind an NDF contract is that they are settled in cash rather than physical delivery of the underlying currency.
Why is it significant that NDFs are settled in cash?
Certain assets are more difficult to deliver than others. For example, EUR/USD is a very deliverable asset because it is easy to find liquidity in both the Euro and US Dollars. However, something like USD/BRL isn't as deliverable as it is harder to find liquidity for the Real. By using a cash deliverable contract this makes these otherwise inaccessible forex pairs much more viable additions to a portfolio. This same principle can be applied for lots of places that have currency controls, and NDFs can be used as a way of acting on or hedging any interesting but less liquid opportunities.
Is there an increasing demand for NDFs in the market right now? Where is that coming from?
In a broad sense, yes. More people are becoming interested in NDFs, but there is a caveat as in a lot of cases the demand can be increasingly made up of people hedging rather than looking to speculate on the currency. A big advantage for companies with foreign offices is that NDFs make it possible to hedge the exchange rate risk of an expansion. However, there will still be a good amount of demand for NDFs from those looking to speculate. Especially for NDFs, there can be quite a lot of volatility in these types of pairs so it can be an interesting addition to a well risk managed portfolio.
Is hedging the main use for NDFs? How would someone use NDFs to hedge against risk?
Hedging or speculation, it'd be one of the two. For hedging, we can use the Brazilian Real as an example again. If there's a firm who has a Brazilian office, that firm will have to pay salaries in Brazilian to its local employees. Therefore, they are at least partly tied to the value of Brazilian currency in their operating cycle; to manage their exposure that more volatile currency, they can hedge the difference between another currency and Brazilian. Because an NDF is essentially a forward contract, it makes it much easier to hedge against the less available currency.
The same principle applies to speculation. You can go to Brazil and get Brazilian Real but outside of that economy it is much harder trying to access and trade that currency, because there's limited liquidity. That's where an NDF comes in and allows brokers and traders to speculate on these instruments without the need for a deliverable currency.
As part of our commitment to bring interesting and innovative opportunities to our clients Finalto offers NDF assets within our trading ecosystems. To understand how this exciting asset class fits into your strategy, Finalto sat down with its Head of Liquidity, Antony Parsons. In this interview we explore what NDFs are and why they and how they solve liquidity issues for less accessible currency pairs.
What is an NDF?
NDF stands for, ‘non-deliverable forward’. They are a type of forward contract used in foreign exchange markets. When trading an NDF, counterparties agree to settle the difference between the contracted NDF rate and the prevailing spot exchange rate on a specified future date. The key characteristic behind an NDF contract is that they are settled in cash rather than physical delivery of the underlying currency.
Why is it significant that NDFs are settled in cash?
Certain assets are more difficult to deliver than others. For example, EUR/USD is a very deliverable asset because it is easy to find liquidity in both the Euro and US Dollars. However, something like USD/BRL isn't as deliverable as it is harder to find liquidity for the Real. By using a cash deliverable contract this makes these otherwise inaccessible forex pairs much more viable additions to a portfolio. This same principle can be applied for lots of places that have currency controls, and NDFs can be used as a way of acting on or hedging any interesting but less liquid opportunities.
Is there an increasing demand for NDFs in the market right now? Where is that coming from?
In a broad sense, yes. More people are becoming interested in NDFs, but there is a caveat as in a lot of cases the demand can be increasingly made up of people hedging rather than looking to speculate on the currency. A big advantage for companies with foreign offices is that NDFs make it possible to hedge the exchange rate risk of an expansion. However, there will still be a good amount of demand for NDFs from those looking to speculate. Especially for NDFs, there can be quite a lot of volatility in these types of pairs so it can be an interesting addition to a well risk managed portfolio.
Is hedging the main use for NDFs? How would someone use NDFs to hedge against risk?
Hedging or speculation, it'd be one of the two. For hedging, we can use the Brazilian Real as an example again. If there's a firm who has a Brazilian office, that firm will have to pay salaries in Brazilian to its local employees. Therefore, they are at least partly tied to the value of Brazilian currency in their operating cycle; to manage their exposure that more volatile currency, they can hedge the difference between another currency and Brazilian. Because an NDF is essentially a forward contract, it makes it much easier to hedge against the less available currency.
The same principle applies to speculation. You can go to Brazil and get Brazilian Real but outside of that economy it is much harder trying to access and trade that currency, because there's limited liquidity. That's where an NDF comes in and allows brokers and traders to speculate on these instruments without the need for a deliverable currency.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
In this conversation, we sit down with Drew Niv, CSO at ATFX Connect and one of the most influential figures in modern FX.
We speak about market structure, the institutional view on liquidity, and the sharp rise of prop trading, a sector Drew has been commenting on in recent months. Drew explains why he once dismissed prop trading, why his view changed, and what he now thinks the model means for brokers, clients and risk managers.
We explore subscription-fee dependency, the high reneging rate, and the long-term challenge: how brokers can build a more stable and honest version of the model. Drew also talks about the traffic advantage standalone prop firms have built and why brokers may still win in the long run if they take the right approach.
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
Executive Interview | Remonda Z. Kirketerp Møller| CEO & Founder Muinmos | FMLS:25
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this interview, Remonda Z. Kirketerp Møller, founder of Muinmos, breaks down the state of AI in regtech and what responsible adoption really looks like for brokers. We talk about rising fragmentation, the pressures around compliance accuracy, and why most firms are still in the early stages of AI maturity.
Ramanda also shares insights on regulator sandboxes, shifting expectations around accountability, and the current reality of MiCA licensing and passporting in Europe.
A concise look at where compliance, onboarding, and AI-driven processes are heading next.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
In this conversation, we speak with Aydin Bonabi, CEO and co-founder of Surveill, a firm focused on fraud detection and AI-driven compliance tools for financial institutions.
We start with Aydin’s view of the Summit and the challenges brokers face as fraud tactics grow more complex. He explains how firms can stay ahead through real-time signals, data patterns, and early-stage detection.
We also talk about AI training and why compliance teams often struggle to keep models accurate, fair, and aligned with regulatory expectations. Aydin breaks down what “good” AI training looks like inside a financial environment, including the importance of clean data, domain expertise, and human oversight.
He closes with a clear message: fraud is scaling, and so must the tools that stop it.
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Exness expands its presence in Africa: Inside our interview with Paul Margarites in Cape Town
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Finance Magnates met with Paul Margarites, Exness regional commercial director for Sub-Saharan Africa, during a visit to the firm’s office opening in Cape Town. In this talk, led by Andrea Badiola Mateos, Co-CEO at Finance Magnates, Paul shares views on the South African trading space, local user behavior, mobile trends, regulation, team growth, and how Exness plans to grow in more markets across the region. @Exness
Read the article at: https://www.financemagnates.com/thought-leadership/exness-expands-its-presence-in-africa-inside-our-interview-with-paul-margarites/
#exness #financemagnates #exnesstrading #CFDtrading #tradeonline #africanews #capetown
Executive Interview | Jas Shah | FMLS:25
Executive Interview | Jas Shah | FMLS:25
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
Interview with Jas Shah
Builder | Adviser | Fintech Writer | Product Strategist
In this episode, Jonathan Fine sat down with Jas Shah, one of the most thoughtful voices in global fintech. Known for his work across advisory, product, stablecoins, and his widely read writing, Jas brings a rare combination of industry insight and plain-spoken clarity.
We talk about his first impression of the Summit, the projects that keep him busy today, and how they connect to the stablecoin panel he joined. Jas shares his view on the link between fintech, wealthtech and retail brokers, especially as firms like Revolut, eToro and Trading212 blur long-standing lines in the market.
We also explore what stablecoin adoption might look like for retail investment platforms, including a few product and UX angles that are not obvious at first glance.
To close, Jas explains how he thinks about writing, and how he approaches “shipping” pieces that spark debate across the industry.
