ADVOKS GLOBAL · KENYA
The Capital Markets (Derivatives Markets) Regulations
53. Consideration for grant of licence
Edition: 2025-02-14 · In force
53. Consideration for grant of licence
(1)An applicant seeking a licence under regulation 51 shall be required to—(a)be a company limited by shares;(b)have a chief executive who is a fit and proper person as described under section 24A of the Act and who has experience of not less than five years in the business of buying, selling or dealing in commodities, commodity derivatives contracts or other securities;(c)have the necessary infrastructure including office space, equipment and trained staff to effectively discharge its activities;(d)have as its directors and key personnel, persons who are fit and proper as described under section 24A of the Act; and(e)have a minimum net capital and minimum net worth as determined by the derivatives exchange and approved by the Authority from time to time.(2)Where an applicant is a market intermediary of another securities exchange in addition to the derivatives exchange, the applicant shall provide an undertaking that it shall allocate a prescribed percentage of the net capital balance to support its activities at the derivatives exchange.(3)The net capital required under regulation (3) shall—(a)not be less than the minimum required net capital balance at the derivatives exchange;(b)be kept segregated; and(c)be maintained at all times.(4)A shareholder, a director and key personnel of the applicant shall be persons who have not defaulted in payment of dues at a clearing house.