Nairobi Securities Exchange delays derivatives market launch to third quarter
Business
By
Reuters
| Jul 29, 2015
Kenya's Nairobi Securities Exchange has delayed the roll out of a derivatives market to this quarter from the earlier target date of the second quarter to adequately prepare the market for the launch, it said on Wednesday.
NSE plans to offer derivative instruments, becoming the second bourse in Sub Sahara Africa to do so after Johannesburg, in a bid to boost liquidity.
"The launch has been deferred slightly. We are targeting this quarter," the bourse said.
"It is imperative that prior to launch of this product, the market understands clearly the positive impact of derivatives as tools to manage investment risk," it said.
Progress had been made towards the setting up of the market, the NSE said, citing the establishment of a clearing house, a guarantee fund and an oversight committee made up of industry professionals.
READ MORE
Expert: The shilling has regained value, but don't expect it to last
Unearthing the artifacts of WWII: A journey through Matuu and beyond
Roam, County Bus Service partner to deploy 200 electric buses
Budget cuts loom for Parliament thanks to Sh9.6b Bunge Towers
Private sector partnerships important to catalysing sports
Tax stand-off as boda boda riders defy county call to pay
Islamic banking gets traction in Africa as Salaam Bank feted
Data privacy major challenge for Kenya's digital space, report
Angola ICT Minister: Invest in space industry to ensure a connected, peaceful Africa
NSE wants to become the third biggest exchange on the continent, up from fifth currently, its chief executive, Geoffrey Odundo told Reuters in March.
The Kenyan bourse serves as an entry point for foreign funds looking to tap into fast economic growth rates in east Africa but it currently ranks behind South Africa, Nigeria, Egypt and Morocco in terms of market size.
- Expert: The shilling has regained value, but don't expect it to last
- Budget cuts loom for Parliament thanks to Sh9.6b Bunge Towers