Interest in Kenya’s capital markets continues to grow as the Nairobi Securities Exchange (NSE) signs up 6 clearing members as the bourse gets ready to launch its Derivatives market.
The six (6) 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 with a number of other banks slated to sign up in the near future. The Clearing members will, by performing the central tasks of clearing and settling transactions, bolster the NSE’s capabilities to start the trading of derivatives. These derivative instruments will initially include stock index and currency futures and will serve to deepen liquidity in the Kenyan markets expanding the Exchange’s product offering.
The NSE Derivatives Market, which recently got approval from the Capital Markets Authority (CMA), will allow Exchange Traded Derivatives based on a variety of underlying financial instruments including currencies and equities. Read More