Thursday May 17 2018
News Source: Global Exchanges
Focus: Derivative Market Segment
Type: General
Country: Kenya
On 15th May 2018, the Nairobi Securities Exchange (NSE) received approval to undertake a Pilot Phase Test for the Derivatives Market within the next six months. This follows an approval by the Capital Markets Authority which has deemed NSE to have fulfilled the requirements set out in Section 36A of the Capital Markets Act and The Capital Markets (Derivatives Markets) Regulations, 2015.
The approval will enable the Exchange to commence a Pilot Phase Test of the Derivatives Market, which will be restricted to select market participants and a select product category. It will focus on Equity Indexes and selected Single Stock Derivatives.
The overarching aim of the pilot phase, is to test the functionality and process of end to end transactions in a live environment.
In line with its mandate to maintain efficient and smooth functioning financial markets, the Central Bank of Kenya (CBK) has granted a provisional approval to the Stanbic Bank of Kenya and the Co-operative Bank of Kenya to participate as clearing and settlement members during the pilot testing phase.
For additional information please click the link above.