At MDBLaw, we are always energised when working with forward-thinking OTC desks that are building new products for the South-African market.
In our OTC market in South Africa, the majority of OTC license holders follow the same recipe: “standardized products on generic trading platforms with little differentiation in terms of user experience or settlement mechanisms”
A Call for Innovation
We are witnessing new entrants to the OTC market building hybrid business models to re-invent OTC products and execution systems. These innovative models are not only positioned to solve challenges unique to the South African market, they also leverage specific features of our local payment industry to deliver superior returns for investors.
Unlike traditional models, these forward-thinking OTC desks are offering versatile derivative structures (customized margin and hedging features) and settlement options (real‑time Stablecoin cash settlements vs delivery of digital assets) providing a competitive edge that large, international platforms often cannot match.
Enhancing Risk and Compliance
The evolution in product design goes hand in hand with a robust approach to risk and compliance. At MDB Law, we support our clients by developing tailored compliance frameworks, liquidity policies and risk parameters to keep up with their radical new OTC models. With solid technology and product innovation driving improvements in margins, counterparty risk management and hedging efficiency, the stress tests and liquidity profiles evidence the soundness of these approaches.
Firms that embrace these innovations will deliver trade execution and settlement solutions that are not only innovative but exceptionally efficient.
At MDB Law, we transform forward-thinking OTC strategies into compliant, legally robust frameworks that are finely tuned to local market realities. Our expertise ensures that your licensing requirements, hedging strategies, liquidity policies and stress-testing methodologies align with FSCA and FIC requirements, giving you a decisive competitive edge.
If you are ready to elevate your OTC desk and harness these innovative opportunities, contact us today.
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