NSE signs up six banks to clear derivatives

Kenya’s Nairobi Securities Exchange (NSE) has signed up six lenders as clearing banks for its yet-to-be launched derivatives market, it said on Wednesday.

The NSE, an entry point for foreign funds keen to tap robust growth in East African economies, has been planning to start offering derivatives trading since last year.

The six banks are Barclays Kenya, Co-operative Bank of Kenya, CFC Stanbic, NIC Bank, Chase Bank and CBA Bank, the NSE said in a statement.

Its plan to launch a derivatives market, based on underlying financial instruments such as currencies and equities, has already received approval from regulator Capital Markets Authority.

The NSE did not state the exact date of launch for the derivatives market.