The South African entity of retail brokerage group Trive has partnered with liquidity provider Finalto.
The deal means that Trive will be able to offer OTC derivatives products to South African clients, under the regulatory umbrella of Finalto’s OTC Derivatives Provider (‘ODP’) license.
Trive will also make use of Finalto’s liquidity solutions to offer clients trading in OTC products within South Africa.
“Trive SA entered a strategic partnership with Finalto on ODP liquidity to show our commitment to enhancing our clients’ trading experience by providing an ODP-compliant execution venue for our clients,” said Trive SA CEO Marius Grobler.
“This collaboration ensures our clients benefit from superior trading conditions, leading to more efficient, and profitable trading opportunities.”
South Africa’s Financial Sector Conduct Authority introduced the ODP license in 2018. It is required for brokers operating in the country if they want to offer CFDs to retail clients.
However, the local regulator has been quite strict in terms of who it actually gives the license too. For example, IG Group tried to acquire one for their UK entity and then had to set up a local entity in South Africa, then re-apply to get the license.
Several other major providers, including Trading 212 and FXCM, have also applied for the license and subsequently withdrawn their application.
Finalto’s solution means that brokers are able to offer OTC products, without having to get the license itself, by using the liquidity provider’s regulatory umbrella.
“Our partnership with Trive South Africa is a testament to our dedication to expanding our footprint in South Africa,” said Finalto Africa CEO Dany Mawas. “We are excited to support Trive South Africa in providing top-tier and fully ODP-compliant liquidity solutions to their clients.”
