NSE day trading to go live on November 22

NSE day trading to go live on November 22

NSE Chief Executive Officer Geoffrey Odundo during a past address. PHOTO / COURTESY

The Nairobi Securities Exchange (NSE) has pushed back the start of day trading to November 22, 2021 after obtaining the final go ahead from the Capital Markets Authority (CMA).

The NSE was initially set to unveil the mode of trading on November 1 with the roll out being termed as crucial in enhancing market liquidity.

Day trading allows investors to close out on multiple trades in a single day including the buying and selling of shares in one session.

The NSE is betting on the profit window offered by day trading to pull investors in droves into the segment.

“Day trading is a welcome move for local investors who have previously lobbied for the activation of the intra-day trading, as they seek to take advantage of intra-day price movements and increase their profit margins. We are confident of a bullish market performance going forward,” NSE Chief Executive Officer Geoffrey Odundo said.

“Day trading will allow investors to trade one position, two or three times per day. This will increase our turnovers and attract more investors to the bourse, further entrenching the NSE as an innovative and transformational exchange in the region,” added NSE Chairperson Kiprono Kittony.

In the run up to activation, the NSE is already offering incentives to investors to boost participation.

For instance, investors who participate in day trades will receive a discount on the second leg of the transaction which will be levied at 0.114 per cent compared to normal trades which are levied at 0.12 per cent.

The NSE has been on a drive to innovate new segments to boost market activity having recently introduced covered short selling and the unquoted securities platform (USP).