The new platform was to be installed last April but was later pushed to August, after more than a year of delay but this has again been postponed to make it compatible with new products set to be introduced on the Nairobi bourse.
The Capital Markets Authority said in March the Securities Lending and Borrowing and Short Selling regulations 2016 were with the Treasury.
FSVC is a not-for-profit organisation backed by US government with its head office in New York. It helps developing countries build sound financial systems.
A system that allows investors at the Nairobi Securities Exchange #ticker:NSE to borrow or lend bonds and shares will be activated in September and not August as earlier announced.
The Central Depository and Settlement Corporation said Securities Lending and Borrowing (SLB) will only be possible when the upgraded system — which will also allow same-day trading as opposed to current three days—goes live end of September.
The new platform was to be installed last April but was later pushed to August, after more than a year of delay but this has again been postponed to make it compatible with new products set to be introduced on the Nairobi bourse.
“Securities lending and borrowing is a product that’s within our new and upcoming system that we have been planning to roll out. We had hoped that we will be going live even sometime in the course of this month.
Unfortunately there are some certain delays technology-wise that have forced us to push the go-live to sometime towards end of September,” CDSC head of ICT James Gikonyo told the Business Daily.
“We hope by then, as we go live, we will have our new securities lending and borrowing product as part of the new system.”
The Capital Markets Authority said in March the Securities Lending and Borrowing and Short Selling regulations 2016 were with the Treasury.
The regulator had also said they were in discussion with the ministry over taxation rules for the product to ensure uniformity with other products currently trading on the bourse.
CMA chief executive Paul Muthaura said on March 9 the regulator was looking at a taxation framework which will ensure “neutrality for all SLB transactions in line with international best practice”.
The SLB is expected to boost liquidity at the NSE through short-selling.
Andrew Spindler, the president and CEO of Financial Services Volunteer Corps (FSVC), said during a forum on improving liquidity in Kenya’s capital markets on March 9 that SLB will increase securities buyers and sellers at the NSE, and attract more foreign investors.
FSVC is a not-for-profit organisation backed by US government with its head office in New York. It helps developing countries build sound financial systems.
Kenya will be joining South Africa and Nigeria in SLB trading on successful launch. Morocco is also in the process of streamlining its regulatory framework to allow for trade around securities lending and borrowing.
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