Kenya welcomes applications for Futures Exchange

08/06/2011 - Kenya property & investment news Posted by Bon Brunskill
Kenya welcomes applications for Futures Exchange

Applications for the implementation and operation of a Futures Exchange in Kenya are being welcomed by the Capital Markets Authority (CMA).The local or international applicants are required to submit their post to the regulator by the end of June, but no indication has been given of when the exchange would become active.Stella Kilonzo, chief executive at the CMA, said that the announcement is a follow up on the policy announcement from finance minister Uhuru Kenyatta.Ms Kenyatta said in his 2010 budget speech that a Futures Exchange, which establishes contracts to buy commodities or financial instruments at a specified price in the future, was to be established in the East African country.Meanwhile, Ms Kilonzo explained that such an exchange would benefit all sectors of the economy."The proposed Futures Exchange would be incorporated as a demutualised corporate entity to create a new class of investment opportunities that will help elevate the Kenyan economy to a new level in the global economy by facilitating futures trading of multi-asset classes including currency, mineral and energy derivatives," she said.