KENYA: NSE exempted from key CMA trading rule

Monday December 9 2013

It has been reported that stockbrokers in Kenya have obtained a special parliamentary exemption to run a market for trading currencies, commodities and swap contracts without adhering to the Capital Markets Authority (CMA) regulations. Parliament passed a law on 4th December 2013 letting off the Nairobi Securities Exchange (NSE), for at least three years from a key rule requiring dealers of a derivatives exchange to have minimum capital of Sh1 billion.

It set the capital requirement for the Nairobi exchange at Sh500 million, and even more significantly allowed the bourse to set its own rules for handling derivatives transactions and settling trade disputes.

This information will be updated as soon as further details become available.