Other Kenyan brokers said while the CMA has released the broad regulations, specific guidelines were yet to be put out. Not finalisedThe Capital Markets Authority, the regulator, is yet to finalise facilitating regulations for margin trading, which it said in Masterplan 2014-23 would have a positive effect on liquidity. Under margin trading, investors buy more shares than they would buy with own cash, leveraging on a top-up from their stockbroker in form of credit. “Margin lending is a type of lending so automatically allowed as per CMA regulations for investment banks. “The equities market on the NSE has active traders who would be keen to enhance their returns off margin trading,” Mr Gitau said in a statement.

Source: Daily Nation April 23, 2018 07:07 UTC