The Nairobi Securities Exchange (NSE) derivatives market turnover for the nine months of 2024 reached record highs, surpassing the 2022 turnover.
As of 25th September 2024, the year-to-date total turnover of derivatives traded at the NSE stood at Kshs128.41 million, exceeding the full-year 2022 turnover of Kshs 127.5 million.
Also, the figure signifies a 100% uptick from Kshs 64.28 million for the full year 2023.
NSE says the “growth has been attributed to increased appetite from retail investors capitalizing on price movements of listed companies.”
The new figures represent a significant milestone for the NSE derivatives market, NEXT. Since its launch in 2019, the NEXT has been growing steadily in terms of membership and turnover.
Derivatives are investments whose values are linked to the value of underlying assets such as bonds, stocks, bonds, interest rates, currencies, and market indexes. These financial contracts are used for different purposes, including hedging, speculation, and obtaining access to additional markets or assets.
NSE derivative market NEXT allows members to trade Single Stock Futures and Equity Index Futures. Single Stock Futures are financial instruments that provide investors with exposure to the price movements of underlying stocks. Two parties agreed to exchange stocks in a company for the price agreed upon today.
Equity Index Futures are instruments that give investors exposure to price movement on underlying indexes. Investors can profit from the price movements of a group of equities without trading the individual equity.
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