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{
    "id": 374870,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/374870/?format=api",
    "text_counter": 570,
    "type": "speech",
    "speaker_name": "Hon. Sakaja",
    "speaker_title": "",
    "speaker": {
        "id": 13131,
        "legal_name": "Johnson Arthur Sakaja",
        "slug": "johnson-arthur-sakaja"
    },
    "content": "The futures exchange is where you can set a price for a commodity or a good that you want to purchase in the future by agreeing on a price now; especially in industries where there is large or high fluctuation of prices. This shields those who engage in it. For example, I can say that I want to buy oil in the next ten years at this price, knowing that market or rather the price might be much high then, and I lock it at that price. Then you go into options. But I think for now we will stick into matters of futures exchange. So, it is something that is radically transformative. I would like to actually note that in the year 2009 or 2010, if I am not wrong, His Excellency, Uhuru Kenyatta, actually hinted and mentioned the formation or the setting up of futures exchange. This, indeed, is part of the promises that he made even before he was President, and I must applaud him for that. Hon. Temporary Deputy Speaker, Sir, one other thing about this Bill because now we just talk about the general principles, is that it provides alternative structures for capital rising, including securitization. The Chair will realize that for us to achieve Vision 2030 in this country, it is important that we look at Domestic Resource Mobilization (DRM) as avenues for raising capital that we need. If we look at the traditional sources of capital that can be raised even for this Government projects, it will be impossible for us to achieve Vision 2030. But what the Bill gives us is alternative sources of capital rising. To this end, the Bill expands the horizon from the traditional issuance of long term bonds to well packaged financial instruments such as the Mortgage Backed Securities (MBS). Overall, the Bill provides a very clear framework for securitization of transactions. Hon. Temporary Deputy Speaker, Sir, I also heard a Member asking where the mischief is because they are not understanding how we are creating the futures market. The Bill is clearing a distinction between the stock markets and the futures markets. That is why in some cases you can see that futures are being removed from that definition because they must be dealt with separately as an exchange on its own. So, that is why that is being done."
}