The Nairobi Securities Exchange (NSE) has announced that it is in the process of launching a proposed hybrid bond market that is set to boost a more informed trading system.
The project is in collaboration with KCB and will combine both on-screen and over-the-counter trading of fixed-income securities.
In a stakeholder meeting between the two parties, NSE stated that the project would significantly accelerate pre-trade transparency through the introduction of a quotation board, which will in turn increase visibility of market quotes.
The Capital Markets Authority of Kenya CEO, Wycliffe Shamiah, asserted that the move will significantly propel the liquidity of the fixed income market in Kenya.
"The forum enabled the NSE PLC provide a comprehensive overview of the proposed system including the expected benefits such as increased pre trade transparency through the introduction of quotations board which will significantly increase the visibility into the market quotes and support more informed trading," they stated.
Furthermore, NSE gave out regulatory updates and highlighted compliance requirements, which will ensure effective adherence to regulatory standards.
"Additionally, the NSE PLC provided regulatory updates and highlighted compliance requirements and best practices to ensure a smooth integration and adherence to regulatory standards," they stated.
