ADVOKS GLOBAL · KENYA
The Capital Markets (Derivatives Markets) Regulations
7. Trading system
Edition: 2025-02-14 · In force
7. Trading system
(1)A proposed derivatives exchange shall deploy a trading system which shall be approved by the Authority before such system is implemented.(2)The trading system deployed under subregulation (1) shall—(a)be integrated with a clearing and settlement system;(b)have an online screen-based trading system for providing direct market access up to the client level via the internet;(c)be capable of establishing connectivity with brokers and their clients;(d)have the necessary infrastructure to ensure timely clearing and settlement of trades;(e)have an adequate risk management mechanism including a pre trade check performed by the trading system;(f)be capable of providing real time risk management and market surveillance tools for monitoring of trading activities of all brokers and their clients on a real time basis;(g)provide brokers and their clients a facility for accessing both the daily transactions and financial reports including ledgers;(h)have a facility to disseminate information about trades, quantities and quotes in real time to at least one information vending network which is accessible to investors in Kenya and internationally;(i)have adequate systems capacity supported by a business continuity plan including a disaster recovery site;(j)be established and maintained in a way as to ensure that it is secure and maintains the confidentiality of data; and(k)have any other features and functionalities specified by the Authority.