Kenya Plans Derivatives to REITs to Boost Trading Volumes
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Kenya’s bourse, East Africa’s largest, plans to introduce derivatives and real estate investment trusts after equity trading volumes declined, according to the financial-markets regulator.
The Capital Markets Authority will probably approve the introduction of futures products, with a focus on interest-rate and foreign-exchange derivatives, and asset-backed securities by December, Paul Muthaura, the regulator’s acting chief executive officer, said. Exchange-traded funds may be started next year, he said. The FTSE NSE Kenya 25 index has gained 24 percent this year, with the nation’s main stocks gauge the third-best performing in Africa after Ghana and Nigeria.