The annual Finance Magnates Africa Summit (FMAS) has once again proven to be a pivotal event for the financial services sector in South Africa. This year, FMAS 2024 marked a significant milestone for South Africans, as the event saw both new entrants and established local brokerages all striving to gain a first-mover advantage as firmer restrictions were placed on derivatives trading.

South Africa has only a few prime brokerage firms with the requisite Over-the-counter Derivative Product (ODP) licence to make and distribute derivative products and providing ODP-compliant liquidity solutions.

Achieving ODP compliance is not merely about regulatory adherence; it represents a competitive edge. The licensing barrier ensures that brokers who are first to offer these instruments possess a significantly stronger value proposition in South Africa. A business with a streamlined, plug-and-play approach simplifies the compliance process, allowing firms to integrate and comply without bureaucratic hurdles.

As B2B ODP integrations are being announced publicly, it’s important for businesses in this sector to demonstrate how their competitive offerings can ease the process.

"Our ODP solutions are designed for ease and efficiency," says Dany Mawas, CEO of Finalto SA. "As the FSCA increases specificity in their market deployment expectations, maintaining compliance can be challenging. Finalto has invested significant resources to create a trusted, regulator-approved trading environment, providing peace of mind to its clients."

By integrating new services and technology, firms can meet ODP compliance requirements on an expedited timeline, avoiding red tape. This approach is essential as the market mandates compliance for all players offering derivatives.

"To executives and decision-makers still considering in-house or alternative solutions, the regulator’s message is clear: act now," emphasises Mawas. "The market is evolving rapidly, and delaying could mean losing a competitive advantage. Having an exceptionally skilled global compliance department that works daily to stay on top of changing expectations is vital."

For companies unable to divert significant resources to this effort, partnering with an industry leader in the space is a prudent choice. The interest in ODP solutions at FMAS 2024 serves to underscore the urgency for brokers to keep pace with evolving requirements. Firms need ODP licences to stay competitive, and it’s important to have the most efficient path and service to close the gap.

Looking ahead, Mawas and his team will continue to enhance Finalto’s offerings, such as White Label solutions, and provide unparalleled support to clients in achieving compliance and operational excellence. The focus remains on staying ahead of regulatory changes and market demands, ensuring clients have the best tools and solutions available.

Mawas says Finalto is committed to helping firms succeed in this evolving landscape and is excited about the opportunities that lie ahead.