Zambia Joins Africa’s Growing Currency Traders – Launches FX Futures
- Zambia's Bond and Derivatives Exchange enters the world of derivatives as the African nation plans to launch currency futures on its fully automated trading platform in mid-June.
Zambia’s Bond and Derivatives Exchange (BADEX) will officially launch currency futures as the African continent is fast becoming an alternative market as investors in the stagnated US and European markets look to shift their investments elsewhere.
The recently launched derivatives exchange will offer FX futures after recent government reforms were applied to exports of $10,000 or above, which has consequently created demand among corporates for suitable Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and hedging tools.
Peter Sitamulaho, Deputy CEO at the Bond and Derivatives Exchange Zambia, told Forex Magnates: “The recent introduction by the Zambian government of statutory instruments 32&32 which reinforces the use of the Zambian Kwacha as legal tender and requires additional reporting on foreign exchange transactions, the business community is desperate for hedging instruments such as currency futures.”
The county’s currency, the Zambian kwacha, will be traded against four major crosses, the US dollar, the South African rand, British pound sterling and the euro.
Peter Sitamulaho, Deputy CEO at the Bond and Derivatives Exchange Zambia
BADEX will be offering a fully automated trading solution, all trading will be executed on the Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term within the exchange’s rules and regulations, and all positions will be cleared by clearing members and balanced back to the exchange at close of business every day. The exchange that was established in 2009 is using one of South Africa’s leading technology firms for financial markets, Securities & Trading Technology used by neighbouring Johannesburg Stock Exchange (JSE).
BADEX, joins to do the growing list of trading venues in Africa, India’s Financial Technologies, the technology behind the MCX and DGCX launched the Bourse Africa in 2008 as Africa’s requirements for complex financial instruments grow amid global trade and rising commodity prices. Zambia has consistently been achieving economic growth exceeding 5%.
Mr Sitamulaho adds: “There is only one operational derivatives exchange in Africa i.e. JSE. The African market is in dire need of hedging instruments particularly as many countries use foreign exchange to trade and in transactions. Many firms within the African countries and Zambia in particular are exposed to foreign exchange risk with its implications.”
Zambia’s Bond and Derivatives Exchange (BADEX) will officially launch currency futures as the African continent is fast becoming an alternative market as investors in the stagnated US and European markets look to shift their investments elsewhere.
The recently launched derivatives exchange will offer FX futures after recent government reforms were applied to exports of $10,000 or above, which has consequently created demand among corporates for suitable Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term and hedging tools.
Peter Sitamulaho, Deputy CEO at the Bond and Derivatives Exchange Zambia, told Forex Magnates: “The recent introduction by the Zambian government of statutory instruments 32&32 which reinforces the use of the Zambian Kwacha as legal tender and requires additional reporting on foreign exchange transactions, the business community is desperate for hedging instruments such as currency futures.”
The county’s currency, the Zambian kwacha, will be traded against four major crosses, the US dollar, the South African rand, British pound sterling and the euro.
Peter Sitamulaho, Deputy CEO at the Bond and Derivatives Exchange Zambia
BADEX will be offering a fully automated trading solution, all trading will be executed on the Trading Platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term within the exchange’s rules and regulations, and all positions will be cleared by clearing members and balanced back to the exchange at close of business every day. The exchange that was established in 2009 is using one of South Africa’s leading technology firms for financial markets, Securities & Trading Technology used by neighbouring Johannesburg Stock Exchange (JSE).
BADEX, joins to do the growing list of trading venues in Africa, India’s Financial Technologies, the technology behind the MCX and DGCX launched the Bourse Africa in 2008 as Africa’s requirements for complex financial instruments grow amid global trade and rising commodity prices. Zambia has consistently been achieving economic growth exceeding 5%.
Mr Sitamulaho adds: “There is only one operational derivatives exchange in Africa i.e. JSE. The African market is in dire need of hedging instruments particularly as many countries use foreign exchange to trade and in transactions. Many firms within the African countries and Zambia in particular are exposed to foreign exchange risk with its implications.”