Published On: Fri, Jan 30th, 2015

Start of Kenyan Derivatives Market to Boost Regional Hub Status

The Nairobi Securities Exchange, which offers trading in stocks and bonds, will begin derivative products this year in an effort to boost its status as a financial-services hub for East Africa.

The market will be modeled on the Johannesburg Stock Exchange, the continent’s largest, Kenya’s bourse said in a statement on Thursday in the Nairobi-based Daily Nation newspaper.

Trading will start with currency futures and options followed by equity index futures, single stock futures and options, Business Development Manager Terry Adembesa said in April 2013.

“It is going to be a massive game changer,” Aly-Khan Satchu, the chief executive officer of Nairobi-based Rich Management Ltd., an adviser to companies and wealthy individuals, said by phone. “It will give investors more sophisticated financial transactions and is the culmination of a program of several reforms at the Nairobi Securities Exchange.”

Kenya’s exchange ranks as sub-Saharan Africa’s biggest after South Africa, Namibia and Nigeria. The FTSE-NSE 25-Share Index, which climbed 24 percent in 2014, has gained 6 percent this year.


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