NAIROBI, April 15 (Xinhua) -- Kenya's Nairobi Securities Exchange (NSE) plans to establish a derivatives exchange by the end of 2019, an official said on Monday.
NSE CEO Geoffrey Odundo told Xinhua in Nairobi that only one more link in the overall structure of the market is yet to be developed but the trading platform for the derivatives market has already been finalized.
"We are keen to have the derivatives market functional by the end of 2019 so that Kenya can expand the array of capital market products available in the country," Odundo said when the NSE entered into an agreement with the Institute of Certified Financial Analysts.
The derivatives exchange, a financial market for instruments such as futures and options, will help attract new investors into Kenya, Odundo said.
The exchange will initially focus on equity products and then cover other capital market products, he said.
The NSE has already conducted a successful pilot of derivatives trading, Odundo said.
Kenya is keen to tap into the large pool of global investors who prefer trading in derivatives products, he said.
