The Nairobi Securities Exchange (NSE) has formally been recognized as a Self-Regulatory Organization (SRO) by the Capital Markets Authority of Kenya (CMA).
The SRO status gives the NSE power over admission to listing; monitoring issuers’ compliance with continuing listing obligations; admission of trading participants; and oversight and enforcement of trading participants.
“This is a positive development for the industry and well deserved as NSE has ably demonstrated over the last six decades of its unique role in building the standards and practices for the Capital Markets,” NSE Chief Executive Geoffrey Odundo said.
The Nairobi bourse attained the recognition after successfully employing independent management structures for its commercial and regulatory functions; and becoming fully demutualized.
“As we ready ourselves for the launch of the Derivatives Market, this milestone allows us to be the first line regulator for the market with an overarching goal of preserving market integrity and protecting investors,” Odundo added.
The Derivatives Market which will enable investors to hedge against risks such as future contracts or options using other forms of assets, will go live later this year.
As a self-regulating entity, the NSE says it will continue to be proactive in protecting and maintaining investor confidence and market integrity.