Kenyan bourse launches mini-derivatives market for retail investors

Consumer Confidence
(FILES)-- A file photo taken on March 20, 2014 shows shoppers at the new South African retail giant Shoprite outlet in Kano, northern Nigeria. Nigeria has overtaken South Africa as the continent's largest economy with a GDP of $453 billion in 2012, officials said on April 6, 2014. The figure is based on a long-overdue rebasing of Nigeria's gross domestic product to reflect changes in the structure of production and consumption, and compares with South Africa's 2012 result of $384 billion. AFP PHOTO / AMINU ABUBAKAR

The Nairobi Securities Exchange (NSE) on Friday launched a mini-derivatives market for retail investors.

Dubbed the Mini NSE 25 Index futures contract, it will appeal to retail investors due to its lower initial margin requirements, the bourse said in a statement issued in Nairobi.

The NSE said the segment will help increase liquidity and encourage exposure to the Kenyan equities market through the equity index futures contracts.

Investors will need 4,500-5,100 shillings (about 42-47 U.S. dollars) to trade at the mini-derivatives market.

According to the NSE, an index futures contract gives investors the ability to buy or sell an underlying listed financial instrument at a fixed price on a future date. Enditem

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