East African Bond Exchange Set to Launch, Seeks Funding for CMA Licence

The East African Bond Exchange (EABX), a newly incorporated public limited company whose purpose is to establish and operate an over-the-counter securities exchange (OTC Exchange), has began the process of setting up after receiving seed funding from the Kenya Bankers Association and FSD Africa.

Speaking during an interview with NTV Kenya's Business Redefined show, the newly appointed Chief Executive Officer Terrence Adembesa said that EABX will be putting together an application to operate as a market organizer and as a securities exchange.

According to Terrence, the company is in the early stages of setting up and is currently raising funding to meet its regulatory obligations before it formally makes application to the Capital Markets Authority.

"The idea is to make sure that this entity and other market players in the industry work together. Its not to work in isolation..Ultimately, financial products and markets are interlinked," says the CEO on whether there will be a disparity on pricing of the fixed income transactions versus the NSE.

EABX has also tapped a senior official from the National Treasury to its board according to the CEO. He said that the board is also considering a waiver for early market players who join the exchange.

The new exchange will start with government bonds i.e Treasury Bills and Treasury Bonds in Kenya and roll out the same across the East African region.

(Source: Kenya Wall Street)