The Nairobi Securities Exchange #ticker:NSE (NSE) has appointed SCL Advisory Limited to help expand customer base for its data business and shore up revenues from this stream beyond the current level of below Sh30 million per year.
The bourse announced Friday that SCL will advise it on expanding its portfolio of information products and services as well as generate more value from existing and new data sets.
NSE offers premium data products to both domestic and international clients such as data vendors, investment advisors, fund managers, trading system developers and index computing companies.
“SCL Advisory Limited will play a significant role in expanding our data client base and cementing our position as a leading Exchange in providing reliable and credible market information to our International and local investors,” NSE chief executive Geoffrey Odundo said.
“The appointment will also support the NSE grow its data business line as we seek to diversify the Group’s revenue streams for optimal shareholder value.”
Data vendors and other business entities and individuals such as investors rely on the NSE data to make business decisions. However, NSE has not been making a lot of money from this area.
NSE data venting revenue dropped from Sh25.12 million in 2017 to Sh23.38 million in 2018 with the firm depending more on fees and commission for its revenue.
It currently charges Sh58,000 per month to send the day's trading activity for both equity and debt in electronic form. Local subscribers pay Sh133,980 per month to access real time listed equity securities data while foreigners pay Sh16,600 ($1650).
The advisory firm is expected to further support NSE’s efforts of providing professionals with essential data, analytics and services for informed investment and business decisions.
SCL Advisory founder and managing director Selloua Chakri welcomed the appointment, terming Kenya as one of the most attractive investment destination in Africa.
“We are extremely proud to work with the NSE to expand access to key content and services to professionals around the world,” she said.
SCL Advisory has experience in development of capital markets in Africa and the Middle East in areas of product development, marketing, data monetisation, data aggregation and packaging.