KENYA: Amendments to Nairobi Securities Exchange Trading Rules

Wednesday April 12 2017

The Capital Markets Authority has approved amendments to Clauses 5.6 (limits on bids and offers) and 7.8 (ETF reference price) of the NSE Equity Trading Rules to Enable trading of Exchange Traded Funds. The amended regulation reads as follows: 

Limits on Bids and Offers

5.6.1 The daily price movement for an equity security in a single trading session shall not be more than 10% of the equity reference price.

5.6.2 An ETF may be exempted from clause 5.6.1 of these Rules if it is an off shore ETF, a commodity ETF or a domestic ETF with constituent Fixed Income Securities.

5.6.3 Rule 5.6.1 shall also not be applicable with respect to an equity security where:
i the Issuer, ETF or the REIT (as applicable) announces its financial results or material information;
ii it is the first session for the trading of the security ex entitlement;
iii The security has not traded for over three calendar months
iv Trading is in respect of rights

5.6.4 The intra-day price limits of Off-shore ETFs shall be based on the limits that have been imposed in their home jurisdiction and forex fluctuations.

5.6.5 Where rule 5.6.3 is applicable, no Market Order shall be accepted by the ATS.

Reference Price of an ETF

7.8.1 The reference price for an ETF security shall be determined as the last
traded price executed on the Normal Board in a given session.

7.8.2 Where no transactions are recorded in a given session, the firm quotes
by the market maker(s) shall be factored to determine the closing price
of an ETF.

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