EGM Securities, First Online Trading Broker to Offer NSE Derivatives

EGM Securities was the first non-dealing online forex broker to be licensed by the Capital Markets Authority and the first to offer derivative contracts on the Nairobi Securities Exchange Derivatives Market.

EGM Securities has become Kenya’s first online trading broker to offer derivative contracts on the Nairobi Securities Exchange Derivatives Market. 

NSE derivatives contracts are based on the most liquid traded equities and index in Kenya. 

The new NSE derivatives offering will provide investors with a revolutionary 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.  

Commenting on the milestone, 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 enable investors to take quick advantage of intraday trading opportunities on the NSE derivatives markets.”

EGM Securities 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 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.