The Nairobi Securities Exchange has now pushed the much anticipated derivatives exchange to June citing in-adequate preparations from other market players for the product. Furthermore, the Capital Markets Authority is seen to be slowing the process as its supposed to give the final fees given that the exchange has proposed to the CMA to approve charges of between Sh15 and Sh25 for every derivatives contract.
The final amount approved by the Capital markets Authority for the exchange will highly influence the charges passed to the investor by other market intermediaries. The clearing members will charge between 50% and 100% of what the NSE charges.
Two months ago, the exchange had cleared six banks to act as clearing in the derivatives market. Read; NSE Clears 6 banks to act as clearing Members in the derivatives market
“A number of the targeted players in the market are ready. We can go live with a small number of players, but we want to have a critical number so that everything is smooth,” Nairobi Securities Exchange Derivatives Director Mr Terry Adembesa said on an interview.
The Market players that are yet to clearly understand how the system works are the Stockbrokers, analysts,research firms, Central Bank of Kenya, the Retirement Benefits Authority, the Insurance Regulatory Authority, commercial banks’ treasury managers, investment banks, listed companies, fund managers and investors.
Related Post; ODUNDO; How NSE Will handle Derivatives Trading
