ASIC-regulated foreign exchange brokerage Vantage has expanded its service offering to target the growing opportunities in South Africa, one of the fastest growing and most vibrant regions in the world.
Vantage has secured a derivatives license issued by the Financial Sector Conduct Authority (FSCA). The approval allows the firm to act as an OTC derivative provider and therefore is permitted, under regular features of its business, to ‘originate, issue, sell or make a market in OTC derivatives’.
Vantage said it finds several motivations to operate in South Africa which include the favourable business climate and the progressive nature of the country’s legal system in regards to international brokerage companies.
According to the local laws, Vantage is required to appoint registered representatives in the country, at least one key individual and a compliance officer in order to effectively take part in company management. As such, it promoted Ted Odigie to head of sales for Africa in November. Odigie, who has over 17 years of experience in the financial services industry and a particular focus on business development and client management, joined Vantage in August 2021.
“We are thrilled to receive our FSCA license. We have had our sights on South Africa for some time, and we were determined to be able to provide traders with exceptional financial services and products while operating in compliance with the highest regulatory standards,” said Marc Despallieres, chief strategy and trading officer at Vantage.
Forex brokers in South Africa are overseen by the financial sector conduct authority, which approves the firms that can operate within the jurisdiction. The FSCA handles the issuance of licenses and can sanction companies that violate guidelines of the nation’s dual regulation system.
South Africa enjoys a strong and well-organized financial market and therefore has become a popular destination for brokers looking to expand. It is one of the world’s top ten capital markets and boasts thousands of investors. The country itself is a diverse market that is largely devoid of the market saturation seen in other jurisdictions such as Europe.
Vantage has recently expanded its service offering and trading products with the launch of Vantage Connect, a liquidity solution for institutions and corporates in the UK.
The expansion into the B2B market comes at a time when institutional and professional traders are experiencing challenges accessing the wholesale foreign exchange price matching community via a prime brokerage model. The broker says the move comes as part of a wider strategic push to expand the institutional side of their business in response to growing demand for bespoke trading solutions.
