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Kenya’s CDSC to launch short selling, day trading
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youcan'tstopusnow
#11 Posted : Sunday, July 21, 2013 5:07:16 PM
Rank: Chief

Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Cde Monomotapa wrote:
"Na hiyo ni maendeleo.." - H.E, DTM. I'm so wowed btw, sophistication! smile #Awesome

Kazi iendelee!smile
#NextLevel
GOD BLESS YOUR LIFE
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digitek1
#12 Posted : Sunday, July 21, 2013 7:55:44 PM
Rank: Veteran

Joined: 2/3/2010
Posts: 1,797
Location: Kenya
begining of the end for the bourse Sad esp when you add insider trades
I may be wrong..but then I could be right
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youcan'tstopusnow
#13 Posted : Sunday, July 21, 2013 8:07:41 PM
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Joined: 3/24/2010
Posts: 6,779
Location: Black Africa
Now to eliminate that pesky 10 percent rule!;-)
GOD BLESS YOUR LIFE
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maka
#14 Posted : Sunday, July 21, 2013 10:57:12 PM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
digitek1 wrote:
begining of the end for the bourse Sad esp when you add insider trades


Not really just tighten the rules and make bring in new ones to match best market practise...if you cock up jail time for you..
possunt quia posse videntur
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jmbada
#15 Posted : Monday, July 22, 2013 6:21:50 AM
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Joined: 1/1/2011
Posts: 396
This is excellent news and will eventually eliminate shoddy reporting practices, with vague footnotes.
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hisah
#16 Posted : Monday, July 22, 2013 7:56:12 AM
Rank: Chief

Joined: 8/4/2010
Posts: 8,977
maka wrote:
hisah wrote:
Kenyanhustler wrote:
The 10% rule on day trading will be headache....

Commissions are the barrier. And capital gains tax if introduced at an expensive rate. The daily limit of 10% is good enough.

I wonder how efficient the market circuit breakers are just in case short selling goes awry. Same applies to melt ups that breach the day limit without material announcement.

It would be nasty for NSE to experience a flash crash or fat finger scenario.


A lot of money will be required on this I have extensively read and specialisied in Investment operations,we for starters will need a Central counterparty (CCP),we will need firms that will offer lending facilities...the registrars need to be revamped...so many things need to be overhauled...we are gn places...

Definitely a number of things need to be setup to make it successful. Btw I hope they ban 'naked short selling'. It's an avenue, actually a 'highway' for abuse. Next the rules on margin trading or leverage need to be strict as well as the leverage liquidity providers. Leverage levels of x50, x100, x500 are just sheer madness and can introduce very wild volatility during crazy market events like GFC etc.

I do welcome this move so that all types of investors are accomodated and increases the market depth.

Next they should introduce ETF like FTSE NSE15/25. I like tracking and trading indices. They can also introduce NSE20 or NASI as local ETFs. This way you trade both the market weight in addition to your equities portfolio.

Waiting to see hedgefunds popping up soon...
*wanjikus will definitely need a major crash course as NSE does a quantum leap.
$15/barrel oil... The commodities lehman moment arrives as well as Sovereign debt volcano!
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  | | Edit by user: Monday, July 22, 2013 7:58 AM | Reason: Not specified
the deal
#17 Posted : Monday, July 22, 2013 8:17:05 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
NSE & Kenya are not ready for this form of sophistication...this is like the laptop project...give kids laptops when there are is no power in schools...kids are walking to school with jiggers...teachers are underpaid and have no motivation to teach...why not fix the simplest basics first i.e the NSE should upload company results on time not a day after Reuters or Business Daily...
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maka
#18 Posted : Monday, July 22, 2013 9:06:52 AM
Rank: Elder

Joined: 4/22/2010
Posts: 11,522
Location: Nairobi
the deal wrote:
NSE & Kenya are not ready for this form of sophistication...this is like the laptop project...give kids laptops when there are is no power in schools...kids are walking to school with jiggers...teachers are underpaid and have no motivation to teach...why not fix the simplest basics first i.e the NSE should upload company results on time not a day after Reuters or Business Daily...


When I say this am called a pessimist...
So let them just do it...compliance at the NSE is almost non existent it would be interesting to see how they will deal with thr myriad of issues that advancing to such levels will bring...
Btw there remains a lot of controversy about the potential for short selling to disturb the 'normal' functioning of markets.
possunt quia posse videntur
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the deal
#19 Posted : Monday, July 22, 2013 9:35:47 AM
Rank: Elder

Joined: 9/25/2009
Posts: 4,534
Location: Windhoek/Nairobbery
They should just reduce the commissions and settlement period...turnover will rise...they will make more money...instead of introducing weapons of mass destruction.
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mwekez@ji
#20 Posted : Monday, July 22, 2013 10:00:03 AM
Rank: Chief

Joined: 5/31/2011
Posts: 5,121
youcan'tstopusnow wrote:
Cde Monomotapa wrote:
"Na hiyo ni maendeleo.." - H.E, DTM. I'm so wowed btw, sophistication! smile #Awesome

Kazi iendelee!smile
#NextLevel
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