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Kenya stock exchange soon to trade derivatives

24.02.2014

The Kenya stock exchange is about to to start trading derivatives and real estate investment funds.

The Kenya stock exchange is about to to start trading derivatives and real estate investment funds.

Donald Ouma, Head of Market and Product Development, explained to Bloomberg: “The diversity of products and services that we offer will make us more relevant to the economy”.

The stock exchange has taken its first steps towards the launch. The system which will enable the trade of derivatives is already in place. Furthermore, the stock exchange has shared the rules it plans to apply to the trading of real estate investment funds with the Capital Markets Authority.

Companies Housing Finance Ltd, a publicly traded mortgage lender, and Home Africa are planning to trade real estate investment funds.

At first, the stock exchange will focus on interest rate and foreign exchange derivatives, as allowed by a 22 December 2013 Kenyan law.

The Nairobi stock exchange is the third largest stock exchange on the African continent, after South Africa and Nigeria. Its index grew by 36 percent last year.

During her trip to Kenya in January, Christina Lagarde, Managing Director of the International Monetary Fund, said: “Kenya is one of the most dynamic economies in a region that has been a bright spot in the global economy”.ADNFCR-2976-ID-801696529-ADNFCR