NSE, CDSC terminate years-old treasury bond revenue sharing as reforms kick in
L-R: Nairobi Securities Exchange CEO Geoffrey Odundo, CDSC CEO Nkoregamba Mwebesa during the Nation Media Group's bell-ringing ceremony to commemorate the share buyback transaction at the NSE in Nairobi, Kenya on June 28, 2021. PHOTO | NMG
The Nairobi Securities Exchange (NSE) and its associate Central Depository and Settlement Corporation (CDSC) Ltd have terminated a more than 10-year bond revenue sharing agreement after the Central Bank rattled the bond market through the establishment of its own trading platform for government bonds.
On August 1, Central bank moved to implement its own online bond trading platform dubbed ‘CBK DhowCSD’ which has effectively locked out brokers from the lucrative Treasury bond deals since investors can now place their bids directly without involving intermediaries.
