After several years of preparation, the Nairobi Derivatives market will begin to operate on 4th July. NSE received the license to operate from the market regulators; CMA and the Central Bank of Kenya. It will be the number two derivatives market in Sub-Saharan Africa after the Johannesburg market.
The exchange will start by trading single stock futures involving the most traded companies at the NSE such as Safaricom, Equity Holdings, and KCB Group. The platform will also trade equity index futures before introducing other derivatives like forward contracts and swaps.
The derivatives market is expected to improve NSE’s status in the Capital Markets world. Additionally, traders will be able to hedge against risks by investing in the futures.
The NSE conducted a derivatives market pilot program between July and December 2018 where it picked helpful lessons. The exchange will be guided by the highest global standards used by the International Swaps and Derivatives Association.
NSE will conduct a comprehensive derivatives training on the 27th and 28th June that will prepare all market participants for the derivatives market.