Capital Markets

NSE chief targets derivatives trading from early March

NSE chief executive officer Geoffrey Odundo. PHOTO | FILE
NSE chief executive officer Geoffrey Odundo. PHOTO | FILE 

Trading in derivatives at the Nairobi Securities Exchange will kick off in the first week of March, chief executive officer Geoffrey Odundo has said.

Derivatives are financial instruments that investors use to hedge against risk and consist of futures, options, swaps and forward contracts.

They allow investors to bet on the direction of the price movement of shares, market indices, commodities and bonds, create insurance against possible future losses while leaving the investor free to enjoy the potential gains of their investments.

“We are now finalising on the contracts to bring to the market, doing final system tests and putting in place a consultant to provide support so that we achieve the rollout in a structured way. We are ready and should be hitting the market in early March,” Mr Odundo told the Business Daily.