Kenya's Stock Exchange to introduce derivatives and REITs

By IVCPOST Staff Reporter

Jul 10, 2013 03:13 AM EDT

According to the financial-markets regulators, Kenya's stock exchange, plans to introduce derivatives and real estate investment trusts after equity trading volumes declined.

Paul Muthaura, acting chief executive officer of the Capital Markets Authority said that the regulator is set to approve the introduction of future products, with a focus on interest-rate and foreign-exchange derivatives, and asset-backed securities.

Exchange-traded funds are set to start next year.

The FTSE NSE Kenya 25 index has gained 23 percent this year, gauging the third-best with the nation's main stocks performing in comparison to Ghana and Nigeria.

Paul Muthaura said in an interview in Nairobi,"The new range of products will deepen the market. Providing new investment opportunities will attract more foreign investors looking for a variety of investment options and allow local investors to spread their investment and tap into new sources of raising capital for projects."

Kenya's Nairobi (NSEASI) Securities Exchange is sub-Saharan Africa's third-biggest stock market.

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