Finalto Reiterates The Need For Compliance in South African OTC Derivatives Markets

As the Financial Sector Conduct Authority (FSCA) increases its vigilance in penalising Financial Services Providers (FSPs) for violating Financial Markets Act (FMA) restrictions, multi-asset liquidity provider Finalto reiterates its position as a leader in the market making space for South Africa. 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 unlicensed to provide a suite of derivative trading options to their clients.

Finalto announced the launch of its ODP Liquidity Solution in early 2023, positioning itself as one of the few financial institutions in South Africa granted an ODP (Over-the-counter Derivative Product) licence. This licence ensures that any OTC business conducted using Finalto's trading systems is fully regulated and compliant.

Dany Mawas, CEO, Finalto South Africa

Dany Mawas, CEO of Finalto South Africa, 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."

Finalto offers over 20 years of Fintech experience and expertise across a global spread of regulated jurisdictions. The company is committed to providing a trustworthy and sophisticated derivatives liquidity solution, with compliance being a cornerstone of its business practices.

Mawas further stated: "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."

FSPs interested in learning more about Finalto's liquidity solutions and regulatory positioning can contact the Finalto sales team here.