The Nairobi Securities Exchange will work with three banks to set up a clearing house for its planned offering of derivative instruments from the second quarter of this year, its chief executive said on Friday.
Jeff Odundo, who started the job this week, told the Reuters Africa Investment Summit the new products would boost liquidity at the bourse, as it seeks to become the third biggest exchange on the continent, up from fifth currently.
“We have three banks that have signed up to become what we call clearing members and seven trading participants,” Odundo said at the exchange.
He said two of the three banks were international and one was local, without offering further details.
NSE will start the trading of derivatives, including stock index and currency futures, to deepen liquidity.