KENYA: NSE Launches Unquoted Securities Trading Platform

Monday December 21 2020

On 17^th December 2020, the Nairobi Securities Exchange (NSE) announced the launch of Unquoted Securities Platform (USP), a market infrastructure to facilitate the trading, clearing and settlement of securities of unquoted companies, following the approval granted by the Capital Markets Authority (CMA).

The USP will offer issuers an opportunity to access the capital markets for long term funding through private placements whilst enjoying flexibility in listing requirements and obligations. Equally, the USP will enable companies that are not quoted and have a register of shareholders to enjoy price discovery and increase the liquidity of their shares. Additionally, the platform will increase transparency as well as access to information for investors as prices will be published daily.

To trade on the USP, every investor will be required to open and maintain a USP securities trading account which shall be identified by a unique trade identification code generated by the platform. An investor shall buy or sell USP securities by placing a buy or sale order through USP securities dealer.

Click on the above link for further information.