Kenya launches new trading platform for bonds

by Elayne Wangalwa 0

The new system by the Nairobi Securities Exchange (NSE) will enable the trading of foreign-currency bonds. The new bond system which permits online trading of debt securities is incorporated with Kenya’s central bank’s settlement system.

Furthermore, the bourse is working with the Central Depository and Settlement Corporation and the Central Bank of Kenya to extend this facility to corporate bonds.

“This is a significant step towards the exchange’s goal of ensuring that the secondary market becomes more transparent and the price discovery mechanism is beyond reproach. The multicurrency trading functionality of the new system means that foreign denominated bonds can now be listed and traded on the NSE. With this development, we look forward to the listing of the Government of Kenya Sovereign Bond at the Exchange,” Peter Mwangi, chief executive of the Nairobi Securities Exchange said in a statement.

The exchange has other features in its new system that will encompass the ability to support market making, the ability to integrate with regulators’ surveillance systems, among others. The system which is supplied by a South African financial software development company is currently used by the Johannesburg Stock Exchange (JSE), the largest stock exchange in sub-Saharan Africa.

So far the total amount of treasury bonds offered is 15 trillion Kenyan shillings and the bids received is 17 trillion Kenyan shillings but the government has accepted 15.4 trillion Kenyan shillings up 11 basis points.

(READ MORE: Nairobi bourse hits record high on its IPO)

The bourse which self-listed earlier this month by selling a third of its shareholding to the public last week joined the first index in the world that focuses on listed exchanges and other trading venues FTSE Mondo Visione Exchanges Index.