A few months ago, the Capital Markets Authority (CMA) said it was considering licensing a new class of market participants — broker-dealers — with a view of improving liquidity on the Nairobi Securities Exchange (NSE).
The idea is set on introducing market-makers for the stock and derivatives markets to ensure liquidity and raise price-determination efficiency. However, many are yet to understand the value and the role of these participants. Let's unpack this side of the market.
