Scholar Nassim Taleb describes markets as operating on zero intelligence of participants. With the right structures in place, a well-functioning market will be produced even by a collection of the less intelligent participants.
Last week, we woke up to reports that the Nairobi Securities Exchange had petitioned the Capital Markets Authority (CMA) to amend regulations that impose term limits on the bourse's CEO and chairman, giving them the room to stay in office for a longer period. The NSE says it is both a listed company and a licensee of the CMA and argue that the licensee part be moved away and placed under a different body. The officials want the NSE to remain as a publicly listed company only, which therefore means the terms of the CEO and chairman are at the discretion of the board.
