Dar Es Salaam Stock Exchange To Trade Derivatives Soon

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Tanzania’s Dar es Salaam Stock Exchange (DSE) has recently announced that it will extend its services to derivatives trading within the next months to raise investors’ interest and modernize its products and trading.

In an interview with Reuters, DSE CEO Moremi Marwa, explained that the exchange is seeking to encourage more firms to raise funds through DSE as a cheaper alternative when compared with the traditional banks’ loans at rates in the range from 20% to 30%.

DSE is in talks with the Capital Markets and Securities Authority (CMSA), in charge of promoting and regulating the securities business in Tanzania, to add derivatives such as options and futures for equities and forwards for currencies as well, Mr. Marwa said.

The new products are part of a series or innovations that the stock exchange has implemented in order to raise trading volumes, he added.

DSE recently introduced a mobile platform to help investors to buy and sell shares from their smartphones, automated the settlement process reducing its time from five to three days and the CMSA removed restrictions on foreign investors limits to buy more than 60% stake in listed companies at DSE.