The Nairobi Securities Exchange (NSE) has secured a licence to open a derivatives and futures exchange.
NSE said Capital Markets Authority, the regulator, had issued it with a provisional licence to open an exchange that will enable the trading of currencies, commodities and other securities.
NSE will now establish a globally competitive Derivatives Exchange that will enable spot and futures trading of multi-asset classes including equities, currency, interest rate products as well as varied forms of agricultural commodities’ contracts.
NSE acting chief executive Andrew Wachira said in a statement that the exchange had invested in the development of the new market to ensure global standards and trading mechanisms for trading, clearing and settlement.
The bourse has been positioning itself for approval by joining affiliated futures exchanges, investing in a trading platform, beefing up its capital and running simulated trading.
It will, however, be some time before trading can begin since the bourse wants to first engage stakeholders and create public awareness on the complex products.
