NSE, Sterling Capital to boost Derivatives Products in the Market

• NSE, Sterling Capital partner to boost Derivatives Market;

The Nairobi Securities Exchange PLC (NSE) has strategically appointed Sterling Capital as a market maker in its NEXT Derivatives Market, a move designed to accelerate the adoption and growth of derivatives products in Kenya.

This appointment aligns with  the NSE strategy to enhance market liquidity and provide investors with access to a broader range of globally recognized instruments for portfolio and risk management, especially critical amid rising asset price volatility in both local and global markets.

As a market maker, Sterling Capital will offer continuous bid and ask quotes within reasonable spreads, thereby boosting liquidity and market efficiency in this asset class.

This role is expected to further support the development of Kenya’s derivatives market by enabling investors to hedge positions and manage risk more effectively.

Mr. Frank Mwiti, NSE Chief Executive Officer, said the appointment of Sterling Capital as a market maker is a key milestone and reaffirms it’s commitment to building a globally competitive derivatives market.

“We believe these products will help broaden retail participation, given their low entry point and the flexibility to benefit from both upward and downward market movements,” Mwiti said.

The appointment is part of NSE’s broader strategy to revitalize the market, as outlined in the recently launched 2025-2029 strategic plan, he said.

Further, Mwiti noted that a key focus of this plan is to expand the range of investment options available to both retail and institutional investors.

“As part of this initiative, we are set to roll out additional derivatives products-starting with options, which have already received regulatory approval from the Capital Markets Authority and are expected to launch in the near term,” he said.

David Ngaine, Sterling Capital’s Chief Executive, reiterated that this partnership is expected to bolster confidence among institutional and retail investors and promote wider adoption of derivatives as a strategic financial instrument.

“We are delighted to be part of this exciting journey which is a significant step forward in the development of the derivatives market in the country.

This development reflects our commitment to advancing Kenya’s capital markets through innovation and participation,” Ngaine said.

Through this collaboration, Sterling Capital will act as a liquidity provider for derivatives traded on the NSE, enabling more efficient price discovery, enhanced market depth, and smoother execution for market participants, he noted.