NSE-Web-Prospectus-2014

IT departments. Jane has also worked as an Associate
Consultant with PricewaterhouseCoopers Limited, Kenya in
Advisory Consulting within the Accounting and Operations
Effectiveness line of service. In addition, she has worked with
Deloitte (both in Kenya and the USA) for about 11 years in
audit where she gained valuable experience providing auditing,
accounting, compliance, internal controls reviews, risk
identification and management, and financial reporting and
management services across many sectors of the economy.
Jane holds a Master of Business Administration Degree in
Strategic Management from the United States International
University and a Bachelor of Science Degree in Mathematics
(Statistics Major) from the University of Nairobi. She is also a
Certified Public Accountant of Kenya and a member of the
Institute of Certified Public Accountants of Kenya.
8.7 Employees
NSE has a total of 38 who operate within the following
departments:
a) The Operations and Technology Department;
b) The Compliance and Legal Department;
c) The Marketing and Product Development Department; and
d) The Finance and Strategy Department.
The NSE offers a variety of benefits to its employees in addition
to group personal accident scheme, bonus scheme, long service
award and pension scheme.
8.8 Premises
NSE has operated from 1st Floor, Nation Centre, Kimathi Street,
Nairobi for many years. Following the acquisition of its own
modern five storey building on 55 Westlands Road, Nairobi in
December 2012, NSE moved its entire operations in June 2013.
NSE renamed the building to “The EXchange”. NSE also maintains
an independent offsite premises as a standby location for trading/
backup purposes in Westlands, Nairobi.
8.9 Technology
The Automated Trading System is the core equities and bonds
trading system owned and controlled by Nairobi Securities
Exchange Limited. It was acquired from an international software
vendor, went live in September 2006 and has been maintained
through a service level agreement.
The delivery, settlement and registration system i.e. the Central
Depository System is owned and controlled by CDSC Limited. It
was acquired from the same international software vendor in
2004 and has been maintained through a service level agreement.
b) It permits internet access to the system, helping Trading
Participants expand their services across all forty seven (47)
counties;
c) It supports initial public offers, portfolio management and
complaints processing;
d) It supports internet and mobile phone trading.
The BBO System was acquired from another international software
vendor and is being maintained through a service level agreement.
Other systems include the new derivatives system.
8.10 Financials
Refer to Annexure A - Nairobi Securities Exchange Limited
- Financial Information which includes Annexure A1 -
Management Accounts for the Four Months Period Ended 30
April 2014 and Annexure A2 - Reporting Accountants’ Report
for 5 years ended 31 December 2013. For a snapshop refer to
Section 3.1 - Financial Data .
In the year 2013, NSE has had the following key sources of
income:
(1) Equities Transaction Levy
(2) Fixed Income Transaction Levy
(3) Annual Listing Fees
(4) Initial Listings & Additional Listings
(5) Interest Income
(6) Data Vending
(7) Broker back office subscription
(8) Rental income
(9) Market access.
The focus of the NSE up to and including the year 2013 was not
on maximizing profits and dividend payouts but more on service
delivery of its core mandate to its many stakeholders. Following
its Offer, the above focus is set to change as NSE will include
‘creating shareholder value’ amongst its core deliverables. This
change in focus is not uncommon for exchanges that have
demutualized and/or self listed.
The NSE, Kenya Association of Stockbrokers and Investment
Banks, CMA and CDSC launched the NSE Broker Back Office (BBO)
System in year 2012. The BBO System automates the back office
which is connected with the trading platform and the clearing and
settlement platforms – minimizing manual intervention. The BBO
System has the following benefits:-
a) It automates the back office and enables senior management
to monitor and audit activities through suitable alerts and
exception reports;
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