EGM Securities introduces NSE Derivatives Trading

EGM Securities Limited has introduced a platform that will allow its clients to trade at the Nairobi Securities Exchange (NSE) derivatives market.

This makes EGM the first regulated non-dealing multi-asset online trading broker with such an offering that will be available from April 20th, 2021.

NSE Derivatives are futures contracts based on the most popular traded equities at the NSE.

These counters include British American Tobacco Kenya, KCB Group Plc, Equity Group Holdings, Safaricom, East African Breweries and ABSA Bank Kenya Plc.

Besides, EGM clients can also trade in the NSE 25 share index, covering 25 selected stocks at the bourse.

The Derivatives Market at the NSE facilitates the trading of futures contracts at the bourse and is regulated by the Capital Markets Authority (CMA).

This market was established due to the increased integration of the Kenyan financial markets with international markets and volatility in asset prices in local and global financial markets.

There was also a need for more sophisticated risk management tools and strategies and to broaden and deepen Kenyan financial markets.

EGM warns clients that trading on margin carries a high level of risk to one’s capital where a client can lose more than the initial deposit. Its products are thus not suited to all investors.

Clients are told to ensure they fully understand the risks involved and seek independent advice if necessary.