The NSE Derivatives Market (NEXT) has formally announced that trading members can grant their clients trading rights through the Direct Market Access (DMA).
This new platform allows investors to place, buy and sell orders directly on the Exchange’s order book. This will enhance both the visibility and accessibility of the derivatives market.
DMA benefits investors by allowing for faster trade execution and a greater degree of control over trading. The investor is also able to mitigate risks associated with passing trade instructions to third parties since they execute trades themselves.
The Trading Member shall assess its clients before granting DMA rights, based on the client’s level of sophistication and familiarity with derivatives trading, and this may require that the client is first certified by the Exchange to trade NSE derivatives products.
Investors are advised to contact their Trading Members to request DMA access for the market.
The NSE Derivatives Market facilitates the trading of future contracts in the Kenyan market. It is regulated by the Capital Markets Authority.
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