FINANCIAL Securities Exchange (FINSEC) is today set to launch the Derivatives Market to diversify capital markets products and trading.
The launch follows the recent gazetting of Statutory Instrument 70 of 2022 as well as approval of the Derivatives Rules earlier.
A derivatives market is a financial market for derivatives, financial instruments like futures contracts or options, which are derived from other forms of assets.
The first phase in preparing the market for the new product was through holding master classes with market participants and potential investors to equip them with knowledge on how derivatives work, potential risks as well as how investors can derive value from their investments.
The market is fully automated, complete with direct integration of contract writing, trading, clearing, custody, margin management and settlement facilities to ensure efficiency, security and transparency in the entire processes.