Into Africa: Building a sub-Saharan OTC market

Nigeria opened up a local over-the-counter derivatives market last year – a big step for the sub-Saharan region. Dealers and hedgers are now hoping for growth across the region, but some big gaps need to be filled. By Michael Watt

africa

"The biggest fear in the sub-Saharan derivatives market is fear of the unknown,” says Roy Daniels, head of Africa trading at Rand Merchant Bank in Johannesburg – and the unknowns come thick and fast. Basic market fundamentals such as benchmark funding rates and stock exchanges are absent or weak, counterparty risk is difficult to manage, and there is scarcely a paddling pool’s worth of liquidity in many asset classes.

Despite this, South African traders are looking eagerly at the region

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

Most read articles loading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here