NAIROBI, May 15 (Xinhua) -- The Nairobi Securities Exchange (NSE) is set to start the pilot testing of its derivatives market as the bourse moves to expand its trading activities.
A derivatives market involves the trading of financial instruments like futures contracts, stocks, indices, commodities, currencies, exchange rates, or the rate of interest.
These instruments allow one to make profit by betting on the future value of the asset. The NSE on Tuesday said it had received all approval from the Capital Markets Authority and Central Bank of Kenya to undertake a pilot test for its derivatives market in the next six months before a full rollout.
Odundo noted the establishment of a globally competitive derivatives market is in line with the NSE's 2015-2019 strategic plan, which aims to increase listings at the exchange while enhancing product innovation. Enditem
