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Kenya’s Capital markets regulator said on Wednesday it has granted Nairobi Securities Exchange the first license to operate a derivatives markets.
The license authorizes the exchange to offer investors “Equity Single Stock Futures (SSF) and Equity Index Futures (EIF) and later introduce other financial and commodities derivatives.
“The Derivatives Market will facilitate deeper and more liquid capital markets and position Kenya closer to becoming the Heart of Capital Markets Investment in Africa, as envisioned in the Capital Markets Master Plan’, noted CMA Chief Executive, Mr Paul Muthaura.
Market participants have already gone through a six-month Pilot Test Phase conducted between July and December 2018.
The Nairobi Securities Exchange (NSE) has already signed up six Banks who will act as clearing members. The six Clearing members already signed up include Barclays Bank of Kenya, the Co-operative Bank of Kenya, CFC Stanbic Bank, NIC Bank, Chase Bank and CBA Bank.