Nairobi stock exchange reveals plans to improve ranking
29 July 2015, 21:40
Nairobi - Kenya's Nairobi Securities Exchange has delayed the roll out of a
derivatives market to this quarter from the earlier target date of the
second quarter to adequately prepare the market for the launch, it said
NSE plans to offer derivative instruments, becoming the
second bourse in Sub Sahara Africa to do so after Johannesburg, in a
bid to boost liquidity
"The launch has been deferred slightly. We are targeting this quarter," the bourse said.
"It is imperative that prior to launch of this product,
the market understands clearly the positive impact of derivatives as
tools to manage investment risk," it said.
Progress had been made towards the setting up of the
market, the NSE said, citing the establishment of a clearing house, a
guarantee fund and an oversight committee made up of industry
NSE wants to become the third biggest exchange on the
continent, up from fifth currently, its chief executive, Geoffrey Odundo
told Reuters in March.
The Kenyan bourse serves as an entry point for foreign
funds looking to tap into fast economic growth rates in east Africa but
it currently ranks behind South Africa, Nigeria, Egypt and Morocco in
terms of market size.
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