Securities lending on Middle East and Africa agenda
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Securities lending on Middle East and Africa agenda 02 December 2011London Reporter: Anna Reitman
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With Nigeria recently implementing securities lending mechanisms in its market, Kenya and UAE are showing some forward motion as well, note Standard Chartered's personnel in the regions at a recent frontier markets seminar.
John Odhiambo, head of Security Services for Kenya, said that the Capital Markets Authority has appointed a manager with an eye to implementing securities lending by the end of 2012.
"It may not be as sophisticated as in other markets, but it will enhance liquidity," he said.
Stewart Adams, regional head, Investors & Intermediaries, Transaction Banking for the MENA region, also noted that liquidity mechanisms are moving forward, particularly in Qatar, reinforcing widely held beliefs across the financial services industry that the country's exchange will be the first to implement short selling.
One of the problems, Adams explained during his presentation, is that when lending against local shares, there are restrictions against forcing the sale of shares.
Speaking on the sidelines of the forum, Adams also commented that the region's upgrade to emerging market status, currently under review, looks promising.
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