The Nairobi Securities Exchange (NSE) has launched the pilot stage of the derivatives market which had been delayed because of unawareness and limited interest from investors.
The exchange has been preparing live tests since October 2015 according to Capital Markets Authority’s research paper on the low uptake of capital markets products.
NSE chief executive officer Geoffrey Odundo said the pilot stage will trade in equities with Stanbic and Co-op Banks acting as clearing houses. The Central Bank of Kenya has already approved the two banks to carry out this role.
The CMA approved the NSE’s launch of the derivatives market three years ago opening up the market to the introduction of futures contracts for equities.
The Zamara Equity Index
The exchange has also launched Zamara equity index which will monitor the performance of listed equity market in Kenya. The index was launched in partnership with financial services provider Zamara and the bourse.
Zamara equity index will also provide institutional investors with information on the performance of different counters.
Zamara chief executive Sundeep Raichura said the launch of the instrument will help widen the market by attracting pension managers and other players.
- Kenyan Wallstreet
