Equiti Group unit EGM Securities has announced that it has become Kenya’s first online trading broker to offer derivative contracts on the NSE (Nairobi Securities Exchange) Derivatives Market.

NSE derivatives contracts are based on the most liquid traded equities and index in Kenya. The NSE is the principal securities exchange in Kenya.

The new NSE derivatives offering will provide investors with an onboarding process that will take less than five minutes to start trading, as opposed to the current average two-day processing time, putting Kenya at par with global standards.

Samwel Kiraka, CEO of EGM Securities, said:

“We are very pleased to deliver another innovative and world-class offering to Kenya’s financial markets that enables investors to take quick advantage of intraday trading opportunities on the NSE derivatives markets, eg buy in the morning and sell in the afternoon, across all our trading platforms, including MT4, Webtrader, and Kenya’s well-known FXPesa.”

Collaboration between the NSE Derivatives Market, EGM Securities and their parent company Equiti Group’s global Product team, has made this new NSE derivatives offering possible for Kenyan investors.

Geoffrey Odundo, Chief Executive of the NSE said:

“We are proud to be an Exchange leading in innovation and one of our key priority areas for 2021 is to increase product uptake on the alternative products to our investors.”

EGM Securities stated that it will initially introduce futures contracts on the six most traded Kenyan stocks, namely: British American Tobacco Kenya, KCB Group Plc, Equity Group Holdings, Safaricom Plc, East African Breweries Plc and ABSA Bank Kenya Plc, as well as the NSE 25 Index created to cover 25 of the most liquid and blue-chip stocks in Kenya.

The company said that the main benefits of trading on the NSE Derivatives Market versus the cash equity equivalent include the ability to short sell Kenyan cash equities, lower margin costs and lower transaction costs at a flat rate of 0.14%. Investors can protect their portfolios against adverse price movements by trading futures that reflect their stock portfolios.

Brian Myers, CEO of Equiti Capital, adds:

“We always work to add local products to our global offering. We are democratising trading for all, giving access to global markets such as U.S equities and Foreign Exchange (FX) as well as local stocks such as Safaricom. Kenyans deserve the ability to diversify.”

EGM Securities offers in-person financial education at its Nairobi and Nakuru offices as well as other educational offerings like regular seminars and training webinars – all offered at no cost to Kenyans.

In 2018 EGM Securities, a subsidiary of the global Equiti Group, became Kenya’s first online trading broker to obtain a license from the Capital Markets Authority, and in 2019 the company launched its FXPesa trading App.

On 15 October 2020, EGM Securities was admitted as a trading member of NEXT on the NSE. The admission follows EGM Securities’ satisfaction of the licensing and operating requirements of a Derivatives Broker as stipulated under the Capital Markets, Derivatives Markets Regulations, 2015.

Commenting on the launch Kiprono Kittony, Chairman of the NSE said:

“To enhance uptake, the NSE continues to engage with key stakeholders. Specifically concentrating its efforts towards, enhancing the knowledge and training of key market participants, addressing the need to update Investment Policy Statements (IPS) that govern local institutional assets with administrators, trustees and fund managers; and onboarding of online trading members who have built a sizeable community of active retail investors.”

Equiti Group Ltd is the parent company of some of the most progressive FX and CFD brands and prime brokerage providers in the industry. With over 300 global staff and 24/6 customer service, Equiti provides clients with access to individual, corporate and institutional brokerage services across various affiliates and subsidiaries. Equiti Group’s global footprint includes local offices in Europe, the Middle East, the Americas, Africa, and the Asia Pacific regions and provides trading support and services on the world’s leading trading platforms MT4 and MT5.

Regulated entities within Equiti Group include Equiti Capital UK Ltd regulated by the UK’s Financial Conduct Authority, Equiti Group Limited Jordan, regulated and licensed by the Jordan Securities Commission, EGM Futures DMCC, regulated and licensed by UAE’s Security and Commodities Authority, EGM Securities regulated and licensed by the Kenya Capital Markets Authority, Equiti Brokerage (Seychelles) regulated and licensed by the Seychelles Financial Services Authority and Equiti AM, regulated and licensed by the Central Bank of Armenia.