Scope Markets Kenya has been admitted as a trading member of the Nairobi Securities Exchange (NSE) Derivatives Market, enabling the firm to offer exchange-traded contracts to its clients.
The admission follows the firm’s satisfaction of the licensing and operating requirements of a derivatives broker as stipulated under the Capital Markets, Derivatives Markets Regulations, 2015. The derivatives market enables investors to diversify their investments, manage risk, and deploy funds more efficiently.
Scope Markets becomes the second non-dealing online foreign exchange-trading market participant to join the NSE Securities Derivatives Market (NEXT) bringing the total number of active derivatives brokers to nine.
A derivatives contract is an agreement between two or more parties, usually a buyer and a seller, whose value is derived from that of an underlying asset such as currency, stock or commodity. When the value of the underlying asset changes, that of the derivates contract takes a similar course.
Read: NSE Issues Profit Warning For 2022
The introduction of the derivatives market at the NSE in 2019 was meant to transform the capital markets landscape in Kenya by offering local and foreign investors an alternative market segment, plus an opportunity to diversify their investments portfolio.
Speaking during the admission at the NSE, the CEO of Scope Markets Kenya Alex Karanja observed: “We see this admission as an opportunity to expand our product offering in the Kenyan financial market as we seek to play our role in supporting the positioning of Kenya as a financial services hub in the region.”
Mr Karanja said the admission into the segment is part of the company’s strategic move to offer financial diversification to clients, and offer local and foreign customers trading on the company’s trading platform an opportunity to invest in leading companies in Kenya’s stock market and hence diversify their risks.
The move, he noted, will also increase local integration of the Kenyan financial markets with international markets and will help clients manage increased volatility and uncertainties in asset prices in local and international markets.
‘’We commit to offer Kenyans a seamless service as we leverage our global affiliation and expertise to support diversification of our business and product offering,” he said.
Email your news TIPS to editor@thesharpdaily.com