ADVOKS GLOBAL · KENYA
The Capital Markets (Derivatives Markets) Regulations
50. Approval of derivatives contracts
Edition: 2025-02-14 · In force
50. Approval of derivatives contracts
(1)Every derivatives contract shall be approved by the Authority prior to becoming eligible for listing on a derivatives exchange.(2)A derivatives exchange shall submit an application for approval of a derivatives contract to the Authority.(3)Each application for approval of a derivatives contract shall include the following information—(c)duration of the contract;(d)mode of final settlement;(e)grade and quality of the underlying asset, if applicable;(f)position limits at the derivatives broker and client levels; and(g)any other information which the Authority may consider necessary.(4)Upon receipt of an application under subregulation (2), the Authority may, if it is satisfied that the application fulfills the requirements under subregulation (3), approve the derivatives contract for listing on the derivatives exchange.(5)If after the approval of the derivatives contract, the Authority finds the application or operationalization of the approved derivatives contract deficient in any material respect or that the derivatives exchange has failed to comply with any of the prescribed conditions or requirements or that the continued listing of the derivatives contract would not be in the public interest, the Authority may—(a)direct the derivatives exchange to correct the deficiency;(b)direct the derivatives exchange to comply with the prescribed condition or requirement within the specified time;(c)amend the specification of any derivatives contract; or(d)revoke the derivatives contract.(6)An application submitted under subregulation (2) shall not be refused and an approval of a derivatives contract shall not be revoked unless the derivatives exchange has been given the opportunity of being heard.