The Nairobi Securities Exchange (NSE) has been admitted as a full member of the Association of Futures Markets (AFM).
This is an upgrade from an associate membership it attained in February 2013.
The Association promotes and encourages the establishment of new derivative and related markets.
It also organises international conferences to promote communication, transfer of information and experiences among members.
NSE Chief Executive Geoffrey Odundo said, “We are delighted at attaining full membership of the Association of Futures Markets, as it is the industry trade association supporting members in the establishment and continuous advancement of derivative and futures markets. The Association will continue to be pivotal to us as a resource tool with exposure to established derivative and commodities exchanges, as we prepare to launch our very own Derivatives Market.”
Commenting on the news, the Chairman of the AFM Chris Sturgess said, “I congratulate you on securing full membership of the AFM. It is indeed great to see you join South Africa and Malawi as we profile African exchanges to the global network that participate through the AFM. As Chairman of the AFM, it is my privilege to welcome you to this membership and we look forward to working with you as we develop our markets.”
The establishment of a derivatives market in Kenya will enable Kenyan corporate and individuals to manage risk such as fluctuating produce prices, currencies and interest rates more effectively.
The launch of the market underpins NSE's continued focus of diversifying its product offering through innovative new products.